Challenges Encountered by Selected Customs Brokerage Firms

CHALLENGES ENCOUNTERED BY SELECTED
CUSTOMS BROKERAGE FIRMS
A Thesis
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University
Batangas City
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Customs Administration
By:
Ermita, Sherry B.
Fajutag, Mary Joy M.
Garcia, Merryl A.
Manalo, Monica C.
2016
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APPROVAL SHEET
This research entitled "Challenges Encountered by Selected Customs

Brokerage Firms" prepared and submitted by Sherry B. Ermita, Mary Joy M.
Fajutag, Merryl A. Garcia and Monica C. Manalo in partial fulfilment of the
requirements for the degree Bachelor of Science in Customs Administration, has
been examined and recommended for the acceptance for Oral Examintaion.
____________________
Prima C. Delizo, CB
Adviser
Approved by the Committee on Oral Examination with the grade of

________.
PANEL OF EXAMINERS
_____________________________
Elisa S. Diaz, DBA, CPME, CMTIP
Chairperson
__________________________ _______________________
Richmond A. Marasigan, CB Amelia D. Comia, MAEd
Member Member
Accepted and approved in partial fulfillment of the requirements for the

Degree Bachelor of Science in Customs Administration.
______________________ ______________________________
Date Elisa S. Diaz, DBA, CPME, CMTIP
Dean, CABEIHM
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ACKNOWLEDGEMENT
The researchers would like to extend their deepest and sincerest gratitude to
the following persons who have helped and supported much for the completion
and success of their endeavour:
To Batangas State University for providing good education among students
and for doing everything for the welfare of their students.
To Dr. Elisa S. Diaz, the Dean of College of Accountancy, Business,
Economics and International Hospitality Management for her support in the
realization of this study and for being their chairperson.
To Mrs. Prima C. Delizo, for her advices and encouragement, supervision
and assistance regarding the subject.
To the panelists, Asst. Prof. Amelia D. Comia and Mr. Richmond A.
Marasigan for giving constructive criticism and important suggestion that helped
the researchers to make this study possible.
To the statistician, Assoc. Prof. Realiza M. Mame for helping to interpret and
analyze the data.
To the grammarian, Mrs. Lorena F. Mendoza for taking the time to do
necessary corrections and further improvement of this study.
To the librarians for granting the researchers permission to seek
references essential in the preparation of the study.
To the respondents for their cooperation and support by sincerely answering
the questionnaires given.
To the researcher’s classmates and friends for extending their moral
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support needed during critical stage of the study.
To their family, most especially their parents, who have been very supportive
and understanding in pursuing this thesis, for encouraging them to do so well and
for giving them financial support.
Above all, the researchers give glory to Almighty God for giving them
knowledge, wisdom and understanding.
Sherry
Mary Joy
Merryl
Monica
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TABLE OF CONTENTS
TITLE PAGE
TITLE PAGE………………………………………..……………………………………i
APPROVAL SHEET……………………………………………………………………ii
ACKNOWLEDGEMENT………………………………………………………………iii
TABLE OF CONTENTS……………………………………………………………….v
LIST OF TABLES……………………………………………………………………vii
LIST OF FIGURES……………………………………………….…………………viii
ABSTRACT………………………………………………………………………….….ix
CHAPTER I. THE PROBLEM

Introduction……..………………………………………………………………..1
Background of the Study…..……………………………………………………
2
Statement of the Problem………………………………………………………3
Theoretical Framework……………………………………………………….4
Conceptual Framework…………………………………………………………5
Research Hypothesis……………….…………………………………………..7
Significance of the Study……………….………………………………………7
Scope and Limitations of the Study………..
…………………………………..8
Definition of Terms………………………………………………………………8
CHAPTER II. REVIEW OF RELATED LITERATURE

Conceptual Literature………………………………………………………….11
Synthesis……………………………………………………………………….19
Research Literature……………………………………………………………22
Synthesis…...…………………………………………………………………..31
CHAPTER III. RESEARCH METHODOLOGY

Research Design………………………………………………………………35
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Respondents of the Study…………………………….………………………35
Data Gathering Instruments……..……………………………………………35
Data Gathering Procedures…………………………..………………………37
Statistical Treatment of Data…………….……………………………………38
CHAPTER IV. PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA………………………………………………………40
CHAPTER V. SUMMARY, FINDINGS, CONCLUSIONS

AND RECOMMENDATIONS
Summary………………………………………………………………………69
Findings…………………………………………………………………………70
Conclusions………………………………………………………………….…72
Recommendations………………………………………………………….…73
BIBLIOGRAPHY
APPENDICES
Letter of Request
Statistical Treatment of Data
Questionnaire
CURRICULUM VITAE
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LIST OF TABLES
TABLE NO. TITLE PAGE
4.1.1 Distribution of Brokerage Firms in Terms of
Kinds of Business Organization………..………………….………40

Years in Operation…………..………………………………………42

Number of Employees………………………………………………
43

Capitalization…………..…………………………………….………44

Location………..……………………………….……………………45
4.2.1 Assessment on the Problems Encountered by the

Customs Brokerage Firms with Regards to
Import Entry Document Operation……………..………….………46

Customs Brokerage Firms with Regards to Filing of
Bad Order or Short Landed Claim and Processing………..
…….49

Payment of Charges to Government Agencies..…………………
51

Delivery of Goods…………………….……………………………53

Providing Legal and Technical Advices………….………………55
4.3.1 Difference on the Challenges Encountered by the

Brokerage Firms in Terms of Kinds
of Business Organization…………………………………………57
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Brokerage Firms in Terms of Number of
Years in Operation…………………………………………………59

Brokerage Firms in Terms of Number of
Employees………………………………………………………….61

Brokerage Firms in Terms of Capitalization.……………………63

Brokerage Firms in Terms of Location……………….……………65
4.4.1 Proposed Recommendations on the Challenges

Encountered by Selected Customs Brokerage Firms…………68
LIST OF FIGURE
FIGURE PAGE
1 Conceptual Framework………………………………………………6
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ABSTRACT
The researchers chose to study the challenges encountered by the selected
customs brokerage firms. Customs brokerage firm is an entity engaged in
providing services to an importer or exporter which has a licensed customs
broker, especially mentioned in the provision of the Republic Act 9280..
The main objective of this study is to assess the challenges encountered by
the selected customs brokerage firms in Manila, Batangas and Cavite to further
enhance their qualities extended to their clients or customers. Specifically, this
study aims to answer certain questions. The first question is about the profile of
the respondents in terms of kind of business organization, number of years in
operation, number of employees, capitalization, and location. Second is about
how the respondents assess the challenges encountered by the selected
brokerage firms in terms of import entry document operation, filing of bad order
or short landed claim and processing, payment of charges to government
agencies, delivery of goods and providing legal and technical advices. The last
question is about the recommendations that may be proposed to prevent or solve
the challenges encountered by the selected brokerage firms.
Descriptive research design was used in this study. This study utilized a
questionnaire as the main instrument to assess the challenges encountered by
the brokerage firms. The statistical treatments used in the study were
percentage, weighted mean, one way analysis of variance and independent t-
test.
The study found out that majority of the brokerage firms were sole
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proprietorship operating for more than 10 years with 11 to 15 employees and a
capitalization of three Php 3,000,000.00 to Php 15,000,000.00.
The result exhibited that all of the respondents agreed that there were
challenges in import entry document operation, filing of bad order or short landed
claim and processing, payment of charges to government agencies, delivery of
goods, and providing legal and technical advices.
Findings showed that delivery of goods in terms of capitalization was found to
be significant. Likewise, import entry document operation and payment of
charges to government agencies in terms of location was also found to be
significant. The rest of the variables affirms the null hypotheses that there is no
significant difference on the assessment of the respondents towards the
challenges encountered by the selected brokerage firms when grouped
according to profile variables.
The proposed recommendation was the enhancement of qualities rendered
by brokerage firms to their clients in order to maintain positive business
relationships and productivity.
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Chapter I
THE PROBLEM
Introduction
International trade is the exchange of goods and services between countries.
This type of trade gives rise to a world economy, in which prices, or supply and
demand affect and are affected by global events. Trading globally gives
consumers and countries the opportunity to be exposed to goods and services
not available in their own countries. A product that is sold to the global market is
an export, and a product that is bought from the global market is an import.
Historically, the Philippines have been an important center for commerce for
centuries for its ethnic minority. The archipelago has been visited by outlanders
for the purpose of trading in the first and early second millennium. As of 21 st
century, the country is member in several international trade organizations
including APEC, ASEAN and WTO.
In an era of globalization and increased liberalization, economic growth to a
large extent is based on the dynamics of foreign trade where a customs
brokerage has a vital role for without it, importers or exporters who lack time and
unfamiliar with customs rules and regulations could not transact their business
efficiently.
Customs brokerage industry in the Philippines has significant role. It serves
as intermediary between government, importers and exporters. Duly licensed
customs brokers and their accredited firms are the ones authorized to transact in
the Bureau of Customs in behalf of the importer or exporter. Customs brokerage
services in the Philippines involves consultation, preparation of customs
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document for imports and exports, declaration and payment of customs duties
and taxes, and processing of import and export entries (Republic Act No. 9280).
Since there is a great number of demands from different clients, services of
customs brokerage are in need to meet the demand of international trade. As the
customs brokerage firms render their services, it is impossible for them not to
encounter problems which result sometimes to dissatisfaction of their clients and
delays of shipments. Problems may be due to fortuitous events like natural
disasters and accidents causing delay of delivery of goods; due to client’s
negligence like failure to submit or accomplish necessary documents; and
sometimes due to the miscommunication and short period of time given to the
employees of the brokerage firm accomplish their work.
With these problems, it will affect the transaction between the
exporter/importer and the firm that keep their shipments moving through customs
and across boarders which is one of the main source of the revenue of our
country. That is why the researchers decided to conduct this study to propose
recommendations to lessen the problems they encountered.
Background of the Study
The researchers chose to study the challenges encountered by the selected
customs brokerage firms.
Customs Brokerage Firm is an entity engaged in providing services to an
importer or exporter which has a licensed customs broker, specially mentioned in
the provision of the Republic Act 9280. In the process, an importer or exporter
gets the customs brokerage firms to act as his agent in behalf of them with the
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Bureau of Customs. The brokerage firm prepares the necessary documents and
processed those documents at the BOC. It is also a business working for the
release of shipments from BOC custody until delivery to the importers house.
This task is done in behalf of the importing company.
The researchers came up with this study due to the problems they heard
from some customs brokers they interview who are working in a brokerage firm.
Some of these problems were import/export documents, delay in the releasing of
goods, lack of facilities and delayed payment. From there, the researchers wants
to find out and recommend solutions to lessen the problems they encountered
which could help them to improve their services.
As BS Customs Administration students who are future licensed customs
broker, it would be a great help to have a background on the services rendered
by a brokerage firm and how they deal with their challenges. Knowledge on
problems encountered would help them foresee and prevent arising of problems
and it would also serve as a basis in planning possible solutions for more
effective delivery of service. The mentioned reasons serve as the purpose of the
study.
Statement of the Problem
This study aims to determine the Challenges Encountered by the Customs
Brokerage Firms. Specifically, it seeks to answer the following questions:
1. What is the profile of the brokerage in terms of:
1.1. kind of business organization;
1.2. number of years in operation;
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1.3. number of employees; and
1.4. capitalization?
2. What are the problems encountered by the customs brokerage firms with
regards to:
2.1. import entry document operation;
2.2. filing of bad order or short landed claim and processing;
2.3. payment of charges to government agencies;
2.4. delivery of goods; and
2.5. providing legal and technical advices?
3. Is there a significant difference on the challenges encountered by the customs
brokerage firms when the respondents are grouped according to their profile
variable?
4. What recommendations may be proposed to lessen the problems?
Theoretical Framework
Customs brokerage firm services involves import entry document operation,
filing of bad order or short landed claim and processing, payment of charges to
government agencies, delivery of goods and providing legal and technical
advices.
As defined legally by Republic Act 9280, a customs broker is any person who
is a bonafine holder of a valid Certificate of Registration/Professional
Identification Card issued by the Professional Regulatory Board and Professional
Regulation Commission, who is credited to transact to the Bureau of Customs.
Similarly, the practice of the customs broker is correlated to the practice of the
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customs brokerage as it carries the same function and scope of practice.
Customs brokers are tasked to prepare and process import and export
documentation according to customs regulations, laws and procedures; request
or compile necessary import documentation such as customs invoices, certificate
of origin, and cargo-control documents; insure cargo against loss, damage or
pilferage; pay or arrange for payment of taxes and duties on shipments; post
bonds for the products being imported or assist clients in obtaining bonds; clear
good through customs and to their destinations or client; arrange for
transportation, warehousing or product distribution of imported or exported
products; provide advice on transportation options, types of carriers or shipping
routes; and advise customers on import and export restrictions, tariff systems,
insurance requirements, quotas, or other customs-related matters
(www.myplan.com/careers/customs-brokers/description-13-1199.03.html).
Conceptual Framework
In order to achieve desired information, researchers provide a conceptual
model. For clearer understanding of this study, the researchers adopt the Input-
Process-Output (IPO) Model as the foundation of the conceptual framework of
this research wherein the variable taken into consideration was shown.
In this study, the researchers put in the input box the profile of the brokerage
firms as to their kind of business organization; number of years in operation;
number of employees; capitalization; and location. Furthermore, the researchers
tried to find out the problems encountered by the customs brokerage firms with
regards to: import entry document operation; filing of bad order or short landed
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claim and processing; payment of charges to government agencies; delivery of
goods; and providing legal and technical advices.
The information of the input will be collected by means of the process of the
study where the researchers conducted different data gathering procedures like
survey questionnaires and data analysis. The selected brokerage firms in Manila,
Batangas and Cavite were subjected to the said procedures. The information
collected through the process will be used to come up with an output.
The expected output were propose recommendation to lessen the problem.
Input Process Output
Profile of respondents:
 kind of business
organization;
 number of years
in operation;
 number of
employees;
 capitalization;
and
 location
 Survey
Challenges encountered Questionnaire  Propose
by customs brokerage recommenda -
 Data Analysis
firms: tion to lessen
 import entry the problem.
document
operation;
 filing of bad
order or short
landed claim
and processing;
 payment of
charges to
government
agencies;
 delivery of
goods; and
 providing legal
and technical
Figure 1
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Conceptual Paradigm
Research Hypothesis
The researchers tested the null hypothesis.
Ho: There is no significant difference on the challenges encountered by
customs brokerage firms when the respondents are grouped according to profile.
Significance of the Study
The researchers believed that that the results and findings of this study will
benefit the following:
To the Customs Brokerage Firms, this study provides possible solutions
to prevent problems encountered and suggests remedies to solve problems that
can enhance their quality of services to determine the problem and makes
recommendations.
To the Importers and Exporters, they will have a good benefit
considering that customs brokerage firms plays important role in processing and
releasing shipments.
To the Customs Brokers, this study reveal the level of importance of
customs broker’s role in mediating transactions in a way that the personnel of a
customs brokerage firms are mostly customs brokers.
To Batangas State University – College of Accountancy, Business
Economics, and International Hospitality Management, it will be used as an
additional reference that can provide some information related on similar nature.
To the Bachelor of Science in Customs Administration students, it would
help them to understand the challenges encountered by the brokerage firms.
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This will also provide information as a reference in the study that they will be
conducted.
To the present researchers, it will make them knowledgeable by being
aware of the services of the brokerage firms and the problems they encounter
that they may possibly face in the future.
To the future researchers, they could use this study as another source of
information or basis that will help them to conduct their own research related to
this study.
Scope and Limitations of the Study
This study will focus mainly to the challenges encountered by customs
brokerage firms. The researchers will choose some customs brokerage firms in
Manila, Batangas and Cavite as their respondents. The researchers believed that
this study would show the challenges encountered by a customs brokerage firm.
The target respondents in this study will be limited to only 30 brokerage firms
located in Manila, Batangas and Cavite. The questionnaire will cover the profile
of the brokerage firms as to their kind of business organization; number of years
in operation; number of employees; capitalization; and location.
This study will be limited only to the subject investigation of the calendar year
2015-2016.
Definition of Terms
Terminologies used in the study are to be understood in ordinary meaning;
however, technical terms were given their conceptual and operational definition.
Customs Brokerage Firms. This refers to a private company that
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provides transaction services in addition to research and investment advice
(Thefreedictionary.com). In this study, it refers to the entity that provide their client
an efficient and reliable professional services to their customers at a competitive
cost.
Customs Broker. This refers to a bona fide holder of a valid license for
custom broker and also a holder of a valid certificate of accreditation from the
BOC (Llorando, 2006). In this study, it refers to the one who is knowledgeable in
preparing and processing of necessary documents.
Importer. This refers to a person primarily liable for the payment of duties
and taxes on imported goods. He may be a consignee, importer of record, the
owner of the goods if the actual owner is not known fictitious (Llorando, 2006). In
this study, it refers to the one who is seeking assistance to the brokerage firms in
clearing goods from customs barriers.
Delivery of Goods. This refers to the process of delivering the
consignment to the consignee at the agreed place (Llorando, 2006). In this study,
this refers to the process of taking or giving the goods to the importer.
Examination and Appraisal for the Release of Goods. This refers to the
inspection of a shipment by customs officials to verify if the nature, origin,
condition, quantity, and value of the goods conform with the particulars declared
by the importer (Llorando, 2006). In this study, this refers to checking of
documents and condition of goods before discharging from customs zone.
Filing of Bad Order. This refers to a condition wherein articles have
deteriorated in a storage area or warehouse, and are given in a certain discount
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when appraised (Llorando, 2006). In this study, this refers to the filing of an
official request when the goods were damaged or defective.
Import Entry Document Operation. This refers to all documents that
bear on imported goods, such as invoice, bill of lading, packing list, phytosanitary
or quarantine permits, preferential treatment certificate, and the like (Llorando,
2006). In this study, this refers to the processing of documents in order to effect
an importation.
Legal and Technical Advices. This refers to the communication made by
the employee to the client (Llorando, 2006). In this study, this refers to the
consultancy to guide their clients in customs procedures.
Payment of Charges to Government Agencies. This refers to a system
of payment wherein the buyer can only receive cargo upon actual payment of
charges to the required government agencies (Llorando, 2006). In this study, this
refers to the payment of customs duties and taxes and other charges.
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Chapter II
REVIEW OF RELATED LITERATURE
This chapter presents the conceptual and research literature used by the
researchers. From books and past studies which were believed to be relevant to
the present study necessary for the validity of the findings. This part was
consistent of two (2) parts. The first part contained the conceptual literature,
which was the basis of the framework of the study. The second part was the
review of the studies related to the present study.
Conceptual Literature
To provide concepts needed to enhance the study, the researcher
reviewed some relevant literatures.
Customs Brokerage Firms. Customs brokerage services in the
Philippines consist of consultation; preparation of customs-required documents
for imports and exports; declaration of customs duties and taxes; preparation,
signing, filing, lodging, and processing of import and export entries; representing
importers before any government agency and private entities in cases related to
valuation and classification of imported articles; and rendering of other
professional services in matters relating to customs and tariff laws, its procedures
and practices (Republic Act [RA] 9280 or “Customs Brokers Act of 2004”, Section
6). The rendering of customs brokerage services is regulated through licensing
by the Professional Regulatory Board for Customs Brokers (PRBCB) which is
under the Professional Regulation Commission. To be licensed as a customs
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broker, applicants must pass a written examination that tests their knowledge on:
(a) customs laws and implementing rules and regulations; (b) tariff laws and
international trade agreements; (c) practical computation of customs duties,
taxes, and other charges; (d) documentation, professional ethics, customs
procedures and practices; and (e) warehousing and cargo handling operations
(RA 9280, Section 15).
customs brokerage as it carries the same function and scope of practice.
There are five characteristics of a customs brokerage firm such as the
prestige or goodwill of the brokerage firm before the public, ability to draw
customers, ability to bid from shippers efficiency if all personnel from manager
down to the lowest employee and frankness and honesty in delivery of goods
(Tejam, cited by Marasigan et al., 2008).
Import Entry Document Operation. Customs clearance is the process of
clearing a shipment through customs accordingly for any duties, taxes, fines or
penalties payable. In the importation process, goods are cleared through the IED
system. No formal bill of entry is filed as it is generated in the computer system,
but the importer is required a cargo declaration having prescribed particulars
required for processing of the entry for customs clearance (Llorando, 2006).
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The Bureau of Customs provides the necessary gateway infrastructure and
telecommunications facilities to enable electronic lodgement of entries via the
internet through the use of the Value Added Service Provider (VASP) front-end
system. The objectives of the lodgement of entries thru VASP are the following:
to facilitate the processing of import and export declarations and clearances, to
monitor and control the entry of all types of imported goods, i.e., non-commercial
goods, commercial goods, semi-finish goods and regulated goods to monitor the
cargo’s status all throughout the clearance and release process and to promote
paperless procedure in customs processing using internationally agreed and
adopted standards (CMO 19-2007).
According to Manual on Cargo Clearance Process, importers must secure
appropriate licenses, clearances or permits when importing goods that require
them from the issuing/regulatory agencies. The enforcing authorities will check
for compliance by inspecting goods and relevant import documentation and
decide on whether the goods may enter the Philippines.
CPRS serves as a central repository of data/information pertinent to BOC
clients and stakeholders, both internal and external and will include exporters,
other government agencies, and private entities that conduct business with the
Bureau. Client registration is mandatory as various transactions with the Bureau
cannot be processed unless the client is duly registered with the CPRS.
Registrants shall register in CPRS for every role they will assume in their
transactions.
Assessment Notice contains the essential details of the declaration with the
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accounting information necessary for the processing of the declaration. It is
submitted to the Entry Processing Unit to check the authenticity of Entry
Documents and assigns stamps the appropriate section in the Formal Entry. After
that, the Entry Documents will be forwarded to the assigned section in the Formal
Entry Unit.
Import Entry Declaration or IED is used in advanced payment of duties
required in opening a Letter of Credit and it is only valid for only seven (7) days
from the date the payment instruction is generated. Beyond this, an IED
application is considered expired.
Filing of Bad Order or Short Landed Claim and Processing. According to
Manual on Cargo Clearance process, the importer who received “Error” message
should resolve the error/s through Value Added Service Provider and re-file
application as soon as the error/s are solved so the Account Management Office
may approve the importer’s application for registration to Client Profile
Registration System.
The following documents by themselves are not sufficient for a claim: bad
order reports, appraisal reports, notations of exceptions on delivery receipts,
inspection reports or requests, debit notes, invoices to carriers and Proof of
Delivery requests. The following documentation must be provided: a completed
Cargo Loss and Damage Claim, a copy of the Bill of Lading or the Delivery
receipts, a copy of your Supplier’s Invoice showing your cost of the damaged or
lost items or a copy of your invoice for repairs made to restore the merchandise
to its original condition and a Letter of Intent (a letter stating that you wish to
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make a claim against the particular Bill of Lading/Waybill number
(http://www.comoxpacific.com/forms/CPECargoLoss.pdf).
There are several things that the agency should do when a claim is
presented. First, the Notice of Claim must be time reported to the insurance
company. Second, any lawsuit must be transmitted to the insurance company in
a timely manner so that no default judgment is entered against the insured. Third,
the insurance company should be notified if other coverage might be available by
another insurance company or party. Fourth, the initial claim reporting process
should be explained to the client (www.insurance.com/magazines/-
features/2009/09/221/158737.htm).
Payment of Charges to Government Agencies. The new payment system
involves the use of both cash and non-cash payments, both transacted and
stored electronically, for either advanced or final settlement of duties and taxes.
Declared non-cash payment accounts are utilized first by the system during
assessment of import entries. The balance payable in cash is automatically
debited from the importer’s bank account through a payment instruction
generated by the system and is sent over the importer’s bank. The final payment
instruction is generated after the assessment of the declaration by the concerned
ports assessment division. The importers bank account details are provided
during import lodgement at the VASP (Customs Administrative Order 10-2008).
The CCN is issued by the BOC following the procedures for the Client Profile
Registration System. This number will also be required by the AAB when the
importer opens a new or designates an existing account to be referred to as a
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debit account for use in the system as well as the issuance of the AAB Reference
Number.
In accordance with CAO No. 1-2006, a fee shall be charged for the services
rendered by customs broker/brokerage firm for the clients or importer/exporter in
making, signing and filing the required import entry and follow-up work necessary
for the final release of shipments from customs custody, stamp, internal revenue
stamps, notarization fees, cost of prescribed customs form, extra labour as may
be required by the importer/exporter outside of the customs zone and arrastre
and storage, all of which shall be for the account for importer/exporter.
Delivery of goods. According to Manual on Freight Forwarding, distribution
of packages involves the physical act of moving products from one country to
another, this is essentially involves the movement of heavy machinery and
ensure timely delivery and may require the use of heavy cranes, oversize trucks,
special types of ships, etc. This is specialized field for freight forwarders.
While in aspect of distribution of packages, it involves the use of the
transportation management and technologies for the distribution of goods in
internal transportation, as well as distribution of packages provide for the
packing, loading/unloading of parcels and packages into the containers
forwarded to the vessels. Various transportation options are given for the
movement of goods. Speed, cost, reliability and flexibility are important points to
be considered when selecting a transportation mode. The shipper can choose
how freight forwarders will distribute their packages according to the cost, speed
and their requirements. Sea, railway and air are the three (3) most popular
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distribution and transportation modes in cross border movement nowadays.
It’s virtually impossible to list all the reasons freight might be delayed in
transit. Weather is always a major concern. Trucks breakdown, traffic gets heavy,
highways are closed, drivers get sick - and your customers will expect you to
deal with it all. Anytime the freight doesn’t move precisely as expected, your
customers will be looking to you for situation management and information.
According to Dean Rufus B. Rodriguez (2009) in article 1732 of the Civil
Code, common carriers are persons, corporations, firms or association engage in
business or carrying or transporting passengers or goods or both, by land, water
or air for compensation, offering of their services to the public.
Most often, changing venue of goods transport goes according to the terms
of carrier’s document agreed at the starting point. The main task that the carrier
assumes is, of course, as in any contract of carriage, moving goods to the
destination safe, without delay and to deliver them to the recipient in the same
state as it has been assigned. It must therefore take all precautionary measures,
especially in critical situations that can occur during transfer. The carrier may not
load or tranship the goods, all or in part to another means of transport without the
consent of the sender except in the process of obstacles and the carrier cannot
obtain instruction from the sender in due time or if the usage allows it. It is also
forbidden to carry the goods on deck or in open spaces without the sender’s
permission. There are exceptions though, when the carrier is obliged to deal with
special situations that alter the original terms of the contract of carriage. Thus, it
is possible that the sender, under a special right recognized by the regulations in
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force, unilaterally changes the destination of the consignment. Also, there are few
situations when the carrier due to fortuitous event, is forced to take special
measures to protect the interest of the parties of the contract of carriage. The
normal regime of common right suffers appropriate adjustments.
Providing Legal and Technical Advices. Clients are the lifeblood of a
business, so it is crucial to maximize customer satisfaction. Some degree of
customer turnover is inevitable, but successful brokerage firms will retain repeat
customers. It costs about five times more to bring in a new customer than to keep
an existing one. A firm’s ability to attract and retain new customers, is not only
related to its product or services, but strongly related to the way it services its
existing customers and the reputation it creates within and across the
marketplace.
According to the Code of Ethics for Customs Brokers, Article II, Section 4,
a customs broker shall hold inviolable the trust and confidence reposed on him
by his clients. A customs broker shall not take advantage of his/her client’s
innocence, ignorance and credulity. Neither will he/she prod or coach the clients
into committing illegal acts by evading or minimizing the payments of duties and
taxes under the guise of cost-cutting; nor he/she abet illegal acts tending to
defraud the government. He/she shall exercise due diligence over does and of
the cargoes entrusted to him/her for clearance from the customs custody till the
delivery thereof to the firms destination. The needs of the clients shall always be
served above par. He/she shall not overcharge or undercharge his/her clients on
the professional services he/she renders. Charges shall be based strictly on the
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professional standard rates as established by the Professional Regulatory Board
for customs broker. Neither changes shall be based on the schemed called
“package deal” where charges are based on the individual package per
container, a practice tolerating cut-throat competition among members of the
profession.
He/she shall not reveal any trade secret or confidential information of
his/her clients, past or present which may consequently be detrimental to said
clients. He/she shall exercise prudence and utmost caution in dealing with walk-
in clients (Code of Ethics for Customs Brokers, Resolution no. 02, Series of
2005).
Synthesis
According to (Republic Act [RA] 9280 or “Customs Brokers Act of 2004”, Section
6) Customs brokerage services in the Philippines consist of consultation;
preparation of customs-required documents for imports and exports; declaration
of customs duties and taxes; preparation, signing, filing, lodging, and processing
of importer etc. This republic act is found to be related in the present study
because it discussed here the functions and meaning of a Customs brokerage
firms.
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customs brokerage as it carries the same function and scope of practice. This
republic act is found to be ralated to the present study because they definned the
person who manage the Customs brokerage firms.
The study made by Arguelles (cited in Almacen & Gelera), was similar to the
present study because both studies were about customs brokerage firm. The
past study tackled the five characteristics of a customs brokerage firm such as
the prestige or goodwill of the brokerage firm before the public, ability to draw
customers, ability to bid from shippers efficiency if all personnel from manager
down to the lowest employee and frankness and honesty in delivery of goods
(Tejam, cited by Marasigan et al.,).
Moreover, the study of Kling 2010, if a Hold and Alert Order has been applied
to the bill of lading, and this has not been lifted at the time of payment, no release
instruction shall be generated to the transit sheds. Only upon lifting of the HAO
will the release instruction be issued by E2M customs system. This past study is
found to be similar to the present study in terms releasing shipments.
In accordance with CAO No. 1-2006, a fee shall be charged for the services
rendered by customs broker/brokerage firm for the clients or importer/exporter in
making, signing and filing the required import entry and follow-up work necessary
for the final release of shipments from customs custody, stamp, internal revenue
stamps, notarization fees, cost of prescribed customs form, extra labour as may
be required by the importer/exporter outside of the customs zone and arrastre
and storage, all of which shall be for the account for importer/exporter. This CMO
is related to the present study in a way that it discussed the services rendered by
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customs brokerage firms.
The past study conducted by Dean Rufus B. Rodriguez in article 1732 of the
Civil Code, common carriers are persons, corporations, firms or association
engage in business or carrying or transporting passengers or goods or both, by
land, water or air for compensation, offering of their services to the public, this
study is found to be similar to the present because it discussed here the
processing and services.
defraud the government. (Code of Ethics for Customs Brokers, Resolution no.
02, Series of 2005). This code is related to the present study because it is about
the Customs Broker who manage the customs brokerage firms;
In the Tariff and Customs Code of 2011, customs brokerage firms included
customs clearance and tracking services, because at that time port operations
were under the Bureau of Customs. Consequently, it was assumed that these
firms were purely devoted to transacting with the Bureau of Customs on import
and export clearing only. This Tariff and Customs code of 2011 is found to be
similar to the present study because it discussed the function of a Brokerage
firms. Nowadays, however, the functions of the brokerage firms may be divided
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into 3 scopes: offering customs and tariff consultancies; customs clearance; and
all other services on matters relating to tariff and customs laws.
Research Literature
The literature presented in this chapter provided supplementary information
to the researchers under requisite in the studying the Challenges Encountered in
Selected Customs Brokerage Firms. The researchers cited past studies that
were considered relevant to the present study.
The study of Marasigan et al., (2008) “Services rendered by the Customs
Brokerage Firms and Freight Forwarders to Importers of Cocochem Agro-
Industrial Park-Bauan Batangas” used the descriptive method research to find
out the services rendered by the customs brokerage firms and freight forwarders,
its effectiveness and problems encountered. They also looked into significant
relationship between services rendered and problems encountered. Also, they
proposed measures to lessen the problems they focused in their study that the
services offered by the customs brokerage firm were customs and tariff
consultancy, preparation of import documents, import-export brokerage and
representing importers to government agencies and private entities.
It was also revealed in the study that these services were rendered
effectively. They also found out that their respondents seldom encountered all the
problems mentioned in the customs brokerage services. These problems
comprises the following: difficulty in understanding customs procedures;
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unavailability of customs brokers for consultation; failure to inform client about
new customs and tariff laws, rules and regulations and limited time for
consultation.
The data collected were limited to 20 employees from each company of the
logistics division and import/export divisions of United Coconut Chemicals, Inc.,
Sakamato Orient Chemicals Corp., Stephen Phil., Inc., and Minola Refining Corp.
(1 plant manager, 1 supervisor, 1 accounting officer and 2 operators from
company).
Furthermore, in the study conducted by Balmes and Chavez (2009) about
“Performance Assessment of Customs Brokerage Firm in Batangas City”, the
researchers utilized descriptive normative survey to describe the present
situation of the variables subject for evaluation. The study focused on the
assessment of customs brokerage firm’s job performance in areas of services
rendered, namely; documentation of import and export entries, declaration of
customs duties and taxes, representing importers and exporters before any
government agency and private entities and consulting services on matters
relating to tariff and customs. It also covered the profile of customs brokerage
firm such as number of personnel or employees, length of business operation,
capitalization and kind of business organization. Likewise, it determined the
problems encountered by customs brokerage firm in rendering services.
Therefore, they concluded that the level of job performance of customs
brokerage firms on areas of documentation of import and export entries,
declaration of customs duties and taxes and consulting services on matters
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relating to tariff and customs as perceived by the clients are very satisfactory. On
the area of representing importers and exporters before any government agency
and private entities, the customs brokerage firms have satisfactory job
performance. They also said that problems in declaration of customs duties and
taxes and consulting services on matters relating to tariff and customs are
seldom encountered. The study also found out that there are no significant
differences on the perceived level of performance of customs brokerage firms
with respect to the company’s profile variables. From these findings, the
researchers recommended that the person who desires to establish a customs
brokerage firm should have thorough knowledge about the business and be
aware of the company’s primary factors for the success in client’s satisfaction.
There should be an effective implementation of operational procedures to
encompass a smooth flow of customs brokerage operation, thereby gradually
eliminating problems met by the firms.
Moreover, the study of Andal, et al., (2013) aimed to assess the delivery of
services offered by customs brokerage and logistic firm in dealing with clients the
researchers used the descriptive method of research and with the used of the
questionnaire to obtain the needed data for the study. The data gathered through
the use of questionnaire were analyzed and interpreted using the statistical
method of weighted mean, relative frequency or percentage and one way
analysis of variants.
Based from the data gathered the researchers found out that the customs
brokerage and logistics firms strongly agreed in the delivery of their service in
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terms frequency, timeliness and costing. Findings showed that there were no
significant differences on the delivery services of customs brokerage and logistic
firms with respect to their profile variables such as years of operation, number of
employees, business ownership and capitalization. The researchers also
discovered that there were also no significant differences on the delivery of
services of customs brokerage and logistic firms in terms of efficiency, reliability,
timeliness and costing. Moreover, the researchers proposed strategic plan to
improve or enhance their delivery of service to avoid the problems encountered
by their clients.
In the previous study conducted by Bagro, A. et al. (2006) generalized that
customs brokerage also played a significant role in the expeditious release of
shipments and it provide great help not only on the part of the importers but on
the economy as well for it aids in efficiently transacting with the Bureau which
resulted to income generation of the government. They also asserted that the
complicated steps and procedures in the immediate release of shipment justified
the need of an intermediary such as the customs brokerage. The respondents of
the study were 40 employees of the BOC and 15 importers at the Port of
Batangas. The study used descriptive method of research that utilized self-
constructed questionnaire. Weighted mean, independent tool test were used as
the statistical treatment of the study.
In addition to, the study of Enriquez and Makalintal (2006) entitled “The Role
of BOC in the Delivery of Quality Services among Customs Brokerage Firms”
stressed the role of BOC on the delivery of quality services among customs
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brokerage firms. The researchers employed the descriptive normative method of
research and used questionnaire as the main data gathering instrument. Base on
the findings of the study, the BOC greatly performed their role in rendering the
quality of service on the customs brokers. The problem encountered by the BOC
greatly affected the role in rendering quality service specially in assessment of
correct tariff classification and delay in the submission of documentary
requirements. The researchers concluded that if all of these measures were
taken, it would be highly effective.
Similarly, the study of Moreno et al., 2010, in a brokerage firm, problems in
the delivery of article always exist. Usually, problems are encountered in
processing of papers needed for the release of shipments from the BOC and in
passing such document cause delays in the shipment to the consignee or owner
of such articles. Those delays may result also to different problems on the
performance of the company.
On the other hand, the study of Almacen and Gelera (2009) entitled “Extent
of Exercise of Social Responsibilities by Brokerage Firms Transacting at the Port
of Batangas”, the researchers used the descriptive method of research.
Structured questionnaire was the main instrument in gathering data. Data were
supported by related literature. The statistical methods used were weighted
mean, continuum and uncorrelated t-test.
Based on the findings, it was found out that brokerage firms slightly
performed the social responsibilities in relation to the social aspect of the
environment. On the economic aspect, social responsibilities were moderately
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performed as assessed by then employees and slightly performed as assessed
by residents. Meanwhile, the assessment made by the employees showed that
social responsibilities in the bio-physical environment were assessed by the
residents as slightly performed. It was also rebuild that there was no significant
difference between the assessment of the employees and the residents.
Additionally, the study of Mangaba et al., (2010), the employees agreed that
the effect of the problems in the delay of processing of documents are the delay
of shipments, delay in the transportation of articles, congestion on the
warehouse, loss of articles, dissatisfaction on the part of the client, delay on the
delivery of the articles for the warehouse, delay in the release of the shipment,
additional workload and poor job performance and the lack of coordination and
communication of the employees.
Furthermore, the study of Mangaba focuses on the problems such as delay
in the processing of documents, pending cargoes in the BOC and lack of security
in the warehouse that results in the delay of the release of cargoes, inability of
goods to be delivered immediately to the house and entrance of unauthorized
persons in the warehouse. However, remedies are suggested by the respondents
in order to minimize the specified problems. These are to provide additional
facilities and equipment as well as the formulation of storage plan and training
programs to ensure the capability of employees to perform their duties efficiently.
Likewise, the study conducted by Liwag, et al., (2010), the problems
encountered by customs representative in filing of entry were computer
malfunction or system shutdown, difficulty in the requisition of permits or
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clearances, discrepancy between the entered and appraised value, delay in filing
of entry, non-payment of duties and taxes, discrepancy between the declared
weight and actual weight, lack of documentary requirements, insufficient funds,
difficulty in transacting with customs employees and misclassification of cargoes.
The effects of the problems were consumed extra time and effort in
completing the required documents, delay in the processing of documents in
BOC, non-payment of duties and taxes, credibility will be at risk, unable to
release cargoes immediately from customs custody, failure to deliver or distribute
cargoes on time.
In addition, the problems encountered by customs representative in releasing
imported cargoes at BOC were leaking or damaged containers, alerted shipment,
delay in unloading of cargoes, hold order, difficulty in locating goods,
unavailability of delivery trucks, time constraints, delay or non-payment of duties
and taxes, loss of cargoes and lack of documentary requirements.
At the same time, the study of Leones, et al., (2011), entitled The Online
Release System of PAL Atlantic Lines (Philippines) Incorporated Warehousing
Division: An Evaluation, concludes that their respondents also encounter some
difficulties in processing of documents that result in the delay of release of goods.
Some of these are physical condition of the machine that needs to be upgraded,
the internal problem of the system and the unfamiliarity of clients and operator in
the automated system.
Certainly, when the goods are subject for physical examination, its process
for the release will be extended until the goods are examined and its condition is
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determined. Imported goods subject for physical examination has different
procedures than those goods that are not.
Meanwhile, in the study conducted by Lopez, et al., (2005) utilized the
descriptive survey method considered as the most appropriate to the
presentation and analysis of current perceptions on the efficiency and problems
of customs representatives of selected brokerage firm operating at the Port of
Manila and the Manila International Container Port as perceived by customs
representatives and customs employees.
This study used the purposive sampling technique in the selection of
respondents based on certain criteria laid down by the researchers. The
researchers chose a total of 50 respondents within the Bureau of Customs (BOC)
and 50 respondents - customs representatives. The respondents must be, at
least, college graduate and at least exposed to the efficiency and problems of
customs representative operating at the Port of Manila and Manila International
Container Port. The respondents’ profiles included the age group, civil status,
gender, educational attainment and length of exposure to the efficiency and
problems of selected customs representatives.
The researchers utilized not only the questionnaire but also the interviews as
primary sources of data. The secondary sources included published reference
like books and unpublished sources like thesis. In this study, the following
statistical tools were utilized in the analysis and interpretation of data wit:
percentage, ranking average weighted mean and t-test method.
The findings of the study showed that lack of documentary requirements to
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effect the release of shipments is the common problem encountered by the
customs representative. They sometimes encounter problems like computer
malfunction/system shutdown, discrepancy in the findings of the officials and the
declaration made by the firm in terms of the value and classification of the goods.
The profile of the respondents had no significant difference on the efficiency and
problems of customs representatives of selected customs brokerage firms
operating at the Port of Manila and Manila International Container Port when
grouped according to their age, gender, and length of experience.
Moreover, in the study of de Dios, et al., (2009), entitled The Impact of
Information Technology in Trade Facilitation on Small Medium Enterprises in the
Philippines, it is found out that the main difficulty encountered by the respondents
in adapting to electronic lodgement is poor connectivity and frequency of server
breakdown, a result of inadequate infrastructure or systems. Insufficient
preparation by the government is perceived to have hampered implementation of
IT-based measures. Systems improvements with the greatest impact would be
adjustments to accommodate peak hours of traffic and 24/7 server availability.
The infrastructure should be set up in all ports. Updated and clear guidelines
must also be immediately provided in view of fast changing procedures.
In addition, the study of Cayon, et al., (2009), entitled BOC Urges Port Users
to Get Accreditation to Curb Smuggling, the electronic processing of all internal
and external transactions at the port, including import licensing, valuation and
import duties could be the best determent against smuggling at the ports
because all the payment of duties, for instance, go directly to the coffers of the
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national government.
Lastly, in the study conducted by Carandang and Gagalac (2011), the
researchers found out that unavailability of the signatories of required
documents, limited budget allocated for processing, mistake in the lodgement of
entry, viruses or VASP problems, error in the declaration of value, unavailability
of documentary requirements, improper description of articles, error in
declaration of weight, lack of necessary documents, and importer’s bank not
accredited by the BOC were the causes encountered by the processors in filing
of import entry. Procurement of clearances or permits was one of the causes of
the problems encountered in releasing. Other causes moderately agrees upon
the respondents includes undervaluation, misclassification, misdeclaration,
misrouted cargoes, cargoes showing signs of having been opened or missing
cargoes, lack of fund, failure to book delivery, derogatory information from the
country of information, unavailability of cargo handling equipment, lack of
manifest from shipping line and incomplete original documents.
Synthesis
The past study made by Marasigan et al., “Services rendered by the
Customs Brokerage Firms and Freight Forwarders to Importers of Cocochem
Agro-Industrial Park-Bauan Batangas” is found to be similar to the present study
because both study used the descriptive method research to find out the services
rendered by the customs brokerage firms and freight forwarders, its effectiveness
and problems encountered. However, the data collected from the past study were
limited to 20 employees from each company and Import/Export Division while the
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present study used 30 employees, 10 employees in Manila Brokerage Firms, 10
employees in Cavite Brokerage Firms and another 10 employees from Batangas
Brokerage Firms.
Furthermore the study conducted by Bagro, A. et al. was found to be similar
to the present study because at some part of the past study tackled about
brokerage firms in terms of realizing shipments. Both studies both used
descriptive method of research.
The past study made by Enriquez and Makalintal entitled “The Role of BOC
in the Delivery of Quality Services among Customs Brokerage Firms” is found to
be related to the present study because it stressed the role of BOC on the
delivery of quality services among customs brokerage firms. It discussed here
the qualityservices. Nevertheless,
Moreover, the study of Almacen and Gelera is similar to the present study
entitled “Extent of Exercise of Social Responsibilities by Brokerage Firms
Transacting at the Port of Batangas” because both studies used the descriptive
method of research. Structured questionnaire was the main instrument in
gathering data.
According to the study conducted by Balmes and Chavez about
“Performance Assessment of Customs Brokerage Firm in Batangas City”, it
determined the problems encountered by customs brokerage firm in rendering
services this study is much related to the present research because they pertains
to the problems encountered by brokerage firms which the present study’s main
topic.
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Meanwhile, on the study conducted by Liwag, et al., the problems
encountered by customs representative in filing of entry were computer
malfunction or system shutdown, difficulty in the requisition of permits or
clearances, discrepancy between the entered and appraised value, delay in filing
of entry, non-payment of duties and taxes, discrepancy between the declared
weight and actual weight, lack of documentary requirements, insufficient funds,
difficulty in transacting with customs employees and misclassification of cargoes.
Since it discussed the problems met by the customs brokerage firms it is found to
be similar in the present study. However, in the past study the assessment made
by the employees showed that social responsibilities in the Bio-environment were
assessed by the residents as slightly perform whereas, the present study did not
assess.
The past study conducted by Mangaba et al., the employees agreed that the
effect of the problems in the delay of processing of documents are the delay of
shipments, delay in the transportation of articles, congestion on the warehouse,
loss of articles, dissatisfaction on the part of the client, delay on the delivery of
the articles for the warehouse, delay in the release of the shipment, additional
workload and poor job performance and the lack of coordination and
communication of the employees this was found to be similar because the old
study discussed about processing which is part of the topic of the present study
also the study of Mangaba focuses on the problems such as delay in the
processing of documents, pending cargoes in the BOC and lack of security in the
warehouse that results in the delay of the release of cargoes, inability of goods to
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be delivered immediately to the house and entrance of unauthorized persons in
the warehouse.
The study of Leones, et al., entitled The Online Release System of PAL
Atlantic Lines (Philippines) Incorporated Warehousing Division: is found to be
similar to the present study because it tackled about some difficulties in
processing documents that result in the delay of release. However, in the past
study they discussed that some of the physical condition of the machine is need
to be upgraded because that is one of the major problem they encountered while
the present the major problem they encountered is the more on the in the
releasing and processing documents.
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Chapter III
RESEARCH METHODOLOGY
This chapter presents the research design, respondents of the study, data
gathering instrument, data gathering procedure, and the statistical tools used by
the study.
Research Design
The study determined the challenges encountered by customs brokerage
firms in Manila, Batangas and Cavite. To achieve this purpose, the researchers
use the descriptive method to determine the challenges encountered. The
descriptive research design focuses at present condition and the purpose is to
find new truth. By the use of descriptive design, researchers collected data to
answer questions with regards to the topic. The study also made by the use of a
questionnaire as an instrument data gathering.
Respondents of the Study
The respondents of the study were 30 employees of customs brokerage
firms, 10 from brokerage firms in Manila, 10 from Batangas and another 10 from
Cavite. The researchers assesses the challenges encountered by the selected
brokerage firms through the data collected.
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Data Gathering Instrument
The researchers used a self-structured questionnaire as the main instrument
to gather data and help them analyze and substantiate the topic under study. The
researchers used this tool because it is the widely used method to obtain
information needed. The questionnaire that the researchers used were consist of
two parts; the first part was about the company’s profile which includes the kind
of business organization; number of years in operation; number of employees;
capitalization; and location and the second part focused on the problems
encountered by the customs brokerage firms.
Construction. After the approval of the topic, the researchers read more
books and other references and prepared a draft of questionnaire base on the
statement of the problem. It was submitted to the adviser for corrections and
suggestions.
Validation. The preliminary draft of the questionnaire was presented to the
advisers for corrections, suggestions, and validation. After the validation, the
researchers incorporated the comments and suggestions and the draft was again
presented to the adviser for further checking. The questionnaire was also given
to the panel list, chairperson, faculty expert, and industry expert for validation in
revised as suggested, and recommended for the improvement of the
questionnaire. After the questionnaire was validated, the researchers conducted
a dry-run in Parañaque. They used the reliability test to know if the
questionnaires were reliable. The result of the reliability test was 0.774.
Administration. The researchers prepared a letter of request approved by
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the adviser addressed to the department head of the brokerage firms located in
Manila, Batangas and Cavite. Upon approval of the department head, the
researchers administered the questionnaires personally. Questionnaires were
retrieved immediately but some questionnaires were retrieved for the next couple
of days.
Scoring. The researchers use the Likert Scale in determining the problems
encountered by customs brokerage firms in Manila, Batangas and Cavite. The
Likert Scale is an ordered, one-dimensional scale from which the respondents
choose one option that best aligns with their view.
Option Range Verbal Interpretation
4 3.50- 4.00 Strongly Agree
3 2.50 - 3.49 Agree
2 1.50 - 2.49 Disagree
1 1.00 - 1.49 Strongly Disagree
The questionnaire covered the profile of the brokerage firms as to their kind
of business organization; number of years in operation; number of employees;
capitalization; and location. Furthermore, the researchers tried to find out the
problems encountered by the customs brokerage firms with regards to: import
entry document operation, filing of bad order or short landed claim and
processing, payment of charges to government agencies, delivery of goods and
providing legal and technical advices.
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Data Gathering Procedures
The researchers read more books in gathering information related to the
topic. Upon the final approval of the questionnaire, the researchers contacted the
brokerage firms although they encountered some difficulties. Moreover, they
requested the brokerage firms to allow them to administer it in their office. From
the time the request was granted, the researchers personally distributed the
questionnaires to the target respondents. The researchers found it difficult
because some of the respondents rejected the questionnaires. The respondent
answers were considered confidential and used for research purposes only by
the researchers.
Statistical Treatment of Data
The following tools were utilized to interpret the data obtained.
Percentage. Percentage is a number or ratio as a fraction of 100 (Sinag,
2011). This was used to determine the profile of the respondents in terms kind of
business organization; number of years in operation; number of employees; and
capitalization.
Weighted Mean. It is found by multiplying each value by corresponding
weight and dividing the sum of weights and is particularly useful when various
classes or groups contribute differently to the total (Sinag, 2011). This was used
to interpret the assessment of respondents in relation to the problems
encountered by the brokerage firms.
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Independent t-test. This method was used to answer statement of the
problem number 3, which determined the significant difference of the
respondents in the assessment of the challenges encountered by selected
customs brokerage firms (Bluman, 2007).
One-way Analysis of Variance. This was used to determine if there was a
significant difference on the assessment of the respondents when grouped
according to profile variables (Bluman, 2007).
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Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the analysis and interpretation of data gathered based
on the statement of the problem.
1. Profile of the Brokerage Firm
The profile of the brokerage firm in terms of kind of business organization,
number of years in operation, number of employees, capitalization and location
was considered in this study.
1.1 Kind of Business Organization
Table 4.1.1 shows the data of the distribution of the brokerage firms in terms
of kind of business organization.
Table 4.1.1
Distribution of Brokerage Firms in terms of
Kinds of Business Organization
Kind of Business Frequency Percentage
Organization
Sole Proprietorship 22 74
Partnership 1 3
Corporation 7 23
Total 30 100
As indicated in the table, out of 30 respondents, 22 or 74 percent of the
respondents answered sole proprietorship while 7 or 23 percent answered
corporation and only 1 or 3 percent answered partnership.
According to Customs Administrative Order 1-96, when establishing a
customs brokerage firm, there are documents which are required to be
submitted. The following requisite documents are needed are needed in case of
sole proprietorship: Certified copy of the Certificate Customs Broker issued by
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the Board of Examiners for Customs Brokers; clearance from the MMP, if the
applicant resides outside Manila; sworn statement of assets and liabilities
showing the sound financial standing or position of the applicant, duly attested by
reputable CPA or Accounting Firm; list of his employees authorized to represent
him in BOC indicating the nature of their respective work, said list shall contain
the facsimile of the signatures and their addresses; continuing fidelity or surety
bond on the amount not less than 20,000 which amount shall be increased if the
amount found inadequate by the Collector which the government may suffer from
whatever misconduct or negligence of the broker or employees, may permit, as
well as from financial obligations or liabilities that the person has assumed and
failed to settle according to his agreement or commitments with BOC; and,
certified copy of the person’s Privilege Tax Receipt for the period of the license
applied for which shall be submitted not later than 31 st of January every year, and
upon failure to do so, the license shall be deemed canceled or revoked.
Customs brokerage firm can be a partnership or corporation and in case of
establishment, these essential documents are needed: 10 certified copy of co-
partnership or the articles of incorporation, showing, filing and registration thereof
with the securities and exchange commission. In a case of incorporation, a copy
the by-laws duly registered with the securities and exchange commission shall
also be submitted. At least two officers the partnership or corporation must be
duly licensed customs broker; in case of corporation they should be stockholder
and with respect to partnership, they should be co-partners; sworn statement of
the assets and liabilities of the partnership or corporation showing the sound
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financial standing or position of the firm, duly attested the reputable CPA; list of
his employees authorized to represent him in BOC indicating the nature of their
respective work, said list shall contain the facsimile of the signatures and their
addresses; continuing fidelity or surety bond on the amount not less than 20,000
which amount shall be increased if the amount found inadequate by the Collector
which the government may suffer from whatever misconduct or negligence of the
broker or employees, may permit, as well as from financial obligations or
liabilities that the person has assumed and failed to settle according to his
agreement or commitments with BOC; certified copy of the Privilege Tax Receipt
of the firm as well as those of what the license brokers represent, corresponding
for the period for which the license is to be issued.
1.2 Years in Operation
Table 4.1.2 shows the frequency distribution of the respondents in terms of
length of business operation.
Table 4.1.2
Distribution of Brokerage Firms in Terms of
Years in Operation
Years in operation Frequency Percentage
1 – 3 years 0 0
4 – 6 years 0 0
7 – 9 years 11 37
10 years and above 19 63
Total 30 100
The table above shows the profile of the customs brokerage firm in terms
of years of operation. Out of 30 respondents, 19 or 63 percent brokerage firms
operates for ten 10 years and above which also become the highest percentage
and 11 or 37 percent of the respondent operates for 7 to nine 9 years which
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become the lowest percentage.
According to the study cited by Balmes, 2009, 10 and above long years of
business operation implied the stability of the corporation backed up with the
majority stock holders/owners who decided to consolidate their resources and let
the company continue exist.
Furthermore, the ability, skills, resourcefulness, energy, persistence of the
top managers is one of the reasons why the business succeeds for more than 16
years. Also, the ability to keep developing new service while also returns the old
ones. There should be also maturity to treat employees, suppliers and partners
fairly and respectfully to maintain the business.
1.3 Number of Employees
number of personnel or employees.
Table 4.1.3
Number of Employees
Number of Employees Frequency Percentage
1–5 0 0
6 – 10 3 10
11 – 15 14 47
More than 15 13 43
Total 30 100
The table above shows that majority of the brokerage firms has 11 to 15
employees with the highest frequency of 14 and percentage of 47 percent. On
the other hand, only 3 or 10 percent of the respondents has 6-10 employees.
In business, there often few staff with several duties, because of this, it is
important to clearly identify the duties and responsibilities of each employee
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involved in the firm. The focus of a business varies greatly that is why the
number of key personnel and its organization structure is substantially significant
(Performance Management, 2005).
Companies hire employees based on the tasks needed to be addressed. The
brokerage firms varied in terms of the number of employees because they have
belonged to different forms of business organization having different services.
Among the firms, a corporation needed more personnel to work for their
brokerage and transport operations. Even though it was a sole proprietorship,
there was a need for the firm to employ such number of personnel to
accommodate its clients and render varied services effectively.
1.4 Capitalization
capitalization.
Table 4.1.4
Capitalization
Capitalization Frequency Percentage
Below Php 3,000,000.00 9 30
Php 3M – Php 15M 18 60
Php 16M – Php 100M 3 10
Total 30 100
Based on the table above, presented the frequency distribution of the
brokerage firms in terms of capitalization. Out of 30 respondents, 18 brokerage
firms has 3,000,000 to 15,000,000 capitalization with the highest percentage of
60 percent and 3 brokerage firms has 16,000,000 to 100,000,000 capitalization
with the lowest percentage of 10 percent.
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The kind of business organization the brokerage firms were into defined their
capitalization. The first and second customs brokerage firms were both organized
as sole proprietorship. Their capitalization were provided to meet the services the
offered.
There was a difference on the capitalization of the two firms because the
second brokerage firm had additional services which accounted for additional
expenses and capitalization. The third customs brokerage firm had the highest
value of capitalization because it was established as a corporation where
stockholders contributed to the resources needed to cover the expenses of its
brokerage and transport operations.
1.5 Location
Table 4.1.5 presents the distribution of the respondents in terms of location of
business.
Table 4.1.5
Distribution of Brokerage Firms in Terms of Location
Location Frequency Percentage
Manila 10 33.3
Batangas 10 33.3
Cavite 10 33.3
Total 30 100
Based from the above findings, all of the location have an equal frequency
distribution of ten or a percentage of 33.33 percent.
Choosing a location for a new business is one of the most important decisions
entrepreneurs make during the planning phase of launching ventures. The
location of a business can affect many aspects of how it operates, such as total
sales and how costly it is to run. Even home-based businesses and online
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businesses can be affected by location-dependent rules and regulations.
For business in some sectors, location is critically important. The location
decision has a direct effect on an operation’s cost as well as its ability to serve
customers. Location decisions once made, are difficult and costly to undo. It is
always best to get the location decision right for the first time.
2. Problems Encountered by the Customs Brokerage Firms
2.1 . Import Entry Document Operation
Table 4.2.1 shows assessment on the problem encountered by the brokerage
firms with regards to import entry document operation.
Table 4.2.1
Assessment on the Problems Encountered by the
Import Entry Document Operation
Import Entry Document Operation - Weighted Verbal
processing of documents in order to effect an Mean Interpretation
importation
1. Import Entry Declaration is not valid because 3.60 Strongly Agree
it is beyond the prescribed filing period.
2. The importer failed to accomplish Single 3.77 Strongly Agree
Administrative Document/Import Entry and
Internal Revenue Document due to lack of
manifest from shipping line production and
incomplete original documents.
3. The importer failed to submit hard copies of 3.50 Agree
Assessment Notice and attachments to entry
processing offices for verification.
4. Client is not duly registered with the Client 3.53 Strongly Agree
Profile Registration System.
5. The appropriate import permits from 3.60 Strongly Agree
concerned issuing agencies for the importation
is incomplete.
COMPOSITE MEAN 3.60 Strongly Agree
It can be gleaned from Table 4.2.1 that the overall assessment of the
respondents on the problems encountered by the selected customs brokerage
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firms with regards to import entry document operation was strongly agree with a
composite mean of 3.60 verbally interpreted as strongly agree.
As shown in the table, failure of the importer to accomplish Single
Administrative Document/Import Entry and Internal Revenue Document due to
lack of manifest from shipping line production and incomplete original documents
got the highest weighted mean which is 3.77 verbally interpreted as strongly
agree. Followed by Import Entry Declaration is not valid because it is beyond the
prescribed filing period and the appropriate import permits from concerned
issuing agencies for the importation is incomplete both having a weighted mean
of 3.60 verbally interpreted as strongly agree. Whereas client is not duly
registered with the Client Profile Registration System ranks fourth after having a
weighted mean of 3.53 verbally interpreted as strongly agree and lastly, failure of
the importer to submit hard copies of Assessment Notice and attachments to
entry processing offices for verification with a weighted mean of 3.50 verbally
interpreted as strongly agree.
According to Manual on Cargo Clearance Process, importers must secure
appropriate licenses, clearances or permits when importing goods that require
them from the issuing/regulatory agencies. The enforcing authorities will check
for compliance by inspecting goods and relevant import documentation and
decide on whether the goods may enter the Philippines.
CPRS serves as a central repository of data/information pertinent to BOC
clients and stakeholders, both internal and external and will include exporters,
other government agencies, and private entities that conduct business with the
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Bureau. Client registration is mandatory as various transactions with the Bureau
cannot be processed unless the client is duly registered with the CPRS.
Registrants shall register in CPRS for every role they will assume in their
transactions.
Assessment Notice contains the essential details of the declaration with the
accounting information necessary for the processing of the declaration. It is
submitted to the Entry Processing Unit to check the authenticity of Entry
Documents and assigns stamps the appropriate section in the Formal Entry. After
that, the Entry Documents will be forwarded to the assigned section in the Formal
Entry Unit.
In the previous study of Balmes and Chavez, they concluded that the level of job
performance of customs brokerage firms on areas of documentation of import
and export entries, declaration of customs duties and taxes and consulting
services on matters relating to tariff and customs as perceived by the clients are
very satisfactory. On the area of representing importers and exporters before any
government agency and private entities, the customs brokerage firms have
satisfactory job performance. They also said that problems in declaration of
customs duties and taxes and consulting services on matters relating to tariff and
customs are seldom encountered. The study also found out that there are no
significant differences on the perceived level of performance of customs
brokerage firms with respect to the company’s profile variables. From these
findings, the researchers recommended that the person who desires to establish
a customs brokerage firm should have thorough knowledge about the business
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and be aware of the company’s primary factors for the success in client’s
satisfaction. There should be an effective implementation of operational
procedures to encompass a smooth flow of customs brokerage operation,
thereby gradually eliminating problems met by the firms.
2.2. Filing of Bad Order or Short Landed Claim and Processing
firms with regards to filing of bad order or short landed claim and processing.
Table 4.2.2
Filing of Bad Order or Short Landed Claim and Processing
Filing of Bad Order or Short Landed Claim and Weighted Verbal
Processing - filing an official request when the Mean Interpretation
goods were damaged or defective
1. The assigned personnel are unsuitable as a 3.33 Agree
claim handler.
2. The insurance company responded to the 3.10 Agree
claim within a long period.
3. The importer who received error failed to 3.43 Agree
resolve the errors through Value Added Service
Provider.
4. The claimant failed to report the loss to the 3.57 Strongly Agree
insurance company in a timely manner.
5. The supporting documents to file a claim are 3.77 Strongly Agree
incomplete.
COMPOSITE MEAN 3.44 Agree
Data revealed that the respondents agree on the problems encountered by
the selected brokerage firms with regards to filing of bad order or short landed
claim and processing with a composite mean of 3.44 verbally interpreted as
agree.
As shown in the above table, the supporting documents to file a claim are
incomplete got the highest weighted mean of 3.77 verbally interpreted as strongly
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agree. Followed by the claimant failed to report the loss to the insurance
company in a timely manner having a weighted mean of 3.57 verbally interpreted
as strongly agree. The assigned personnel are unsuitable as a claim handler got
a weighted mean of 3.33 verbally interpreted as agree and the insurance
company responded to the claim within a long period got the lowest weighted
mean of 3.10 verbally interpreted as agree.
According to Manual on Cargo Clearance process, the importer who received
“Error” message should resolve the error/s through Value Added Service
Provider and re-file application as soon as the error/s are solved so the Account
Management Office may approve the importer’s application for registration to
Client Profile Registration System.
The following documents by themselves are not sufficient for a claim: bad
order reports, appraisal reports, notations of exceptions on delivery receipts,
inspection reports or requests, debit notes, invoices to carriers and Proof of
Delivery requests. The following documentation must be provided: a completed
Cargo Loss and Damage Claim, a copy of the Bill of Lading or the Delivery
receipts, a copy of your Supplier’s Invoice showing your cost of the damaged or
lost items or a copy of your invoice for repairs made to restore the merchandise
to its original condition and a Letter of Intent (a letter stating that you wish to
make a claim against the particular Bill of Lading/Waybill number)
(http://www.comoxpacific.com/forms/CPECargoLoss.pdf).
There are several things that the agency should do when a claim is
presented. First, the Notice of Claim must be time reported to the insurance
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company. Second, any lawsuit must be transmitted to the insurance company in
a timely manner so that no default judgment is entered against the insured. Third,
the insurance company should be notified if other coverage might be available by
another insurance company or party. Fourth, the initial claim reporting process
should be explained to the client (www.insurance.com/magazines/-
features/2009/09/221/158737.htm).
2.3. Payment of Charges to Government Agencies
firms with regards to payment of charges to government agencies.
Table 4.2.3
Payment of Charges to Government Agencies
Payment of Charges to Government Agencies Weighted Verbal
- payment of duties and taxes due to the Mean Interpretation
government
1. There is a system error in the remittance of 3.50 Strongly Agree
payment of Authorized Agent Bank to BOC
system for the payment of duties and taxes.
2. The receipt of notice of the total assessment of 3.13 Agree
duties and taxes is late.
3. The process of transaction of payments is slow 3.07 Agree
due to poor connection.
4. The importer failed to secure valid and active 3.53 Strongly Agree
Customs Client Number from the BOC.
5. The designated non-cash instrument by the 3.57 Strongly Agree
importer is not enough to cover the payable duties
and taxes.
As shown in the Table 4.2.3, the overall assessment of the respondents on
the problems encountered by the selected customs brokerage firms with regards
to payment of charges to government agencies was agree with a composite
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As reflected on the table, the problem that got the highest weighted mean of
3.57 verbally interpreted as strongly agree is when the designated non-cash
instrument by the importer is not enough to cover the payable duties and taxes.
Next is when the importer failed to secure valid and active Customs Client
Number from the BOC with a weighted mean of 3.53 verbally interpreted as
strongly agree. The receipt of notice of the total assessment of duties and taxes
is late got a weighted mean of 3.13 verbally interpreted as agree. The problem
that got the lowest weighted mean of 3.07 verbally interpreted as agree is when
the process of transaction of payments is slow due to poor connection.
The CCN is issued by the BOC following the procedures for the Client Profile
Registration System. This number will also be required by the AAB when the
importer opens a new or designates an existing account to be referred to as a
debit account for use in the system as well as the issuance of the AAB Reference
Number.
The new payment system involves the use of both cash and non-cash
payments, both transacted and stored electronically, for either advanced or final
settlement of duties and taxes. Declared non-cash payment accounts are utilized
first by the system during assessment of import entries. The balance payable in
cash is automatically debited from the importer’s bank account through a
payment instruction generated by the system and is sent over the importer’s
bank. The final payment instruction is generated after the assessment of the
declaration by the concerned ports assessment division. The importers bank
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account details are provided during import lodgement at the VASP (Customs
Administrative Order 10-2008).
2.4. Delivery of goods
firms with regards to delivery of goods.
Table 4.2.4
Delivery of Goods
Delivery of Goods - process of taking or giving Weighted Verbal
the goods to the importer Mean Interpretation
1. Breaking down of trucks due to faulty battery, 2.97 Agree
lost keys, damaged tyres and wheels and fuel
problems.
2. The road management is poor resulting to 3.03 Agree
heavy traffic.
3. The highways are closed because of an 3.20 Agree
unexpected events and accidents.
4. The cargoes were not delivered on time due to 3.60 Strongly Agree
bad weather.
5. The appropriate trucks and equipment’s for the 3.47 Agree
delivery of the special types of cargo are
insufficient.
It can be gleaned from Table 4.2.4 that the overall assessment of the
respondents on the problems encountered by the selected customs brokerage
firms with regards to delivery of goods was agree with a composite mean of 3.25
verbally interpreted as agree.
As shown in the table, the cargoes were not delivered on time due to bad
weather got the highest weighted mean which is 3.60 verbally interpreted as
strongly agree. Followed by the appropriate trucks and equipment’s for the
delivery of the special types of cargo are insufficient having a weighted mean of
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3.47 verbally interpreted as agree. Whereas, the road management is poor
resulting to heavy traffic ranks fourth after having a weighted mean of 3.03
verbally interpreted as agree and lastly, breaking down of trucks due to faulty
battery, lost keys, damaged tyres and wheels and fuel problems with a weighted
According to Manual on Freight Forwarding, distribution of packages involves
the physical act of moving products from one country to another, this is
essentially involves the movement of heavy machinery and ensure timely
delivery and may require the use of heavy cranes, oversize trucks, special types
of ships, etc. This is specialized field for freight forwarders.
While in aspect of distribution of packages, it involves the use of the
transportation management and technologies for the distribution of goods in
internal transportation, as well as distribution of packages provide for the
packing, loading/unloading of parcels and packages into the containers
forwarded to the vessels. Various transportation options are given for the
movement of goods. Speed, cost, reliability and flexibility are important points to
be considered when selecting a transportation mode. The shipper can choose
how freight forwarders will distribute their packages according to the cost, speed
and their requirements. Sea, railway and air are the three (3) most popular
distribution and transportation modes in cross border movement nowadays.
It’s virtually impossible to list all the reasons freight might be delayed in
transit. Weather is always a major concern. Trucks breakdown, traffic gets heavy,
highways are closed, drivers get sick - and your customers will expect you to
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deal with it all. Anytime the freight doesn’t move precisely as expected, your
customers will be looking to you for situation management and information.
2.5. Providing Legal and Technical Advices
firms with regards to providing legal and technical advices.
Table 4.2.5
Providing Legal and Technical Advices
Providing Legal and Technical Advices - Weighted Verbal
offering help to guide their clients in customs Mean Interpretation
procedures
1. There is a computer malfunction. 2.93 Agree
2. Transacting with customs employees is difficult. 2.97 Agree
3. The job performance of employees is poor. 3.00 Agree
4. The automated system of customs is unfamiliar 3.54 Strongly Agree
to the clients and operator.
5. The guidelines in processing of documents 3.57 Strongly Agree
were not clear and updated.
As shown in the Table 4.2.5, the overall assessment of the respondents on
the problems encountered by the selected customs brokerage firms with regards
to providing legal and technical advices was agree with a composite mean of
3.20 verbally interpreted as agree.
As reflected on the table, the problem that got the highest weighted mean of
3.57 verbally interpreted as strongly agree is when the guidelines in processing
of documents were not clear and updated. Next is when he automated system of
customs is unfamiliar to the clients and operator with a weighted mean of 3.54
verbally interpreted as strongly agree. Transacting with customs employees is
difficult got a weighted mean of 2.97 verbally interpreted as agree. The problem
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that got the lowest weighted mean of 2.93 verbally interpreted as agree is when
there is a computer malfunction.
Clients are the lifeblood of a business, so it is crucial to maximize
customer satisfaction. Some degree of customer turnover is inevitable, but
successful brokerage firms will retain repeat customers. It costs about five times
more to bring in a new customer than to keep an existing one. A firm’s ability to
attract and retain new customers, is not only related to its product or services, but
strongly related to the way it services its existing customers and the reputation it
creates within and across the marketplace.
defraud the government. He/she shall exercise due diligence over does and of
the cargoes entrusted to him/her for clearance from the customs custody till the
delivery thereof to the firms destination. The needs of the clients shall always be
served above par. He/she shall not overcharge or undercharge his/her clients on
the professional services he/she renders. Charges shall be based strictly on the
professional standard rates as established by the Professional Regulatory Board
for customs broker. Neither changes shall be based on the schemed called
“package deal” where charges are based on the individual package per
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container, a practice tolerating cut-throat competition among members of the
profession.
He/she shall not reveal any trade secret or confidential information of
his/her clients, past or present which may consequently be detrimental to said
clients. He/she shall exercise prudence and utmost caution in dealing with walk-
in clients (Code of Ethics for Customs Brokers, Resolution no. 02, Series of
2005).
3. Significant Difference on the Challenges Encountered by the Brokerage
Firms When Grouped According to their Profile
3.1 Differences on the Assessment of the Respondents in Terms of
Kinds of Business Organization
Different forms of business have different operational requirements. A
business also called a firm or an enterprise, is a legally recognized organization
designed to provide goods and/or services to the consumers. Businesses are
predominant in economies, formed to earned profit that will grow the business
itself.
Table 4.3.1
Difference on the Challenges Encountered by the
Brokerage Firms in Terms of Kinds of Business Organization
Challenges p-values Computed Decision on Verbal
f-values Ho Interpretation
Import entry document 0.78 0.25 Failed to Not Significant
operation Reject
Filing of bad order or 0.26 1.44 Failed to Not Significant
short landed claim Reject
and processing
Payment of charges to 0.63 0.46 Failed to Not Significant
government agencies Reject
Delivery of goods 0.80 0.22 Failed to Not Significant
Reject
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Providing legal and 0.93 0.08 Failed to Not Significant
technical advices Reject
It can be gleaned from Table 4.3.1 that all of the p-values are higher than
0.05 level of significance and the computed f-values of 0.25, 0.10, 0.46, 0.22,
1.44, and 0.08 was found not significant. This could also mean that the
respondents do not differ on their assessment on the challenges encountered by
customs brokerage firms when grouped according to kind of business
organization, accepting the null hypothesis.
As stated by Dias, et al, (2009), sole proprietorship is the easiest form of
business to start, and someone who starts a sole proprietorship is an
entrepreneur. A sole proprietorship involves one person owning and running a
business. A sole proprietorship is a business operated by a sole proprietor. One
of the advantages of a sole proprietorship is you get to be your own boss. You
make all the decisions and receive the benefits of those decisions. Besides the
emotional satisfaction of owning a business, retaining all the profit is a major
advantage of a sole proprietorship. Despite these advantages, not everyone is
equipped to own a business. The major disadvantage of operating as a sole
proprietor, however, is that you, the owner, have unlimited liability.
A partnership is an association of two or more person to carry on as co-
owners a business for profit. The purpose or primary purpose must be obtained
profits and to divide the same among the practice. Partnership has an
employment advantage over other entities if they offer employees the opportunity
to become a partner. Partnership incentives often attract highly motivated and
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qualified employees.
Furthermore, corporation makes people think of big businesses that is not
a necessary to be big in order to incorporate. Corporate governance which refers
to the processes, customs policies, laws, and institution affecting the way in
which a corporation is directed, administered, or control. When someone decides
to form a corporation, she or he will put a set of corporate governance/guidelines
in place, that is, a written form of how the business will be run. One of the
advantages of forming a corporation, as opposed to a sole proprietorship or
partnership is the ability to get more money for investment.
Numbers of Years in Operation
The length of operation of a business enterprise signals its financial and
administrative health. A loosing company is not expected to remain in the
business for long periods of time. On the contrary, a profit-earning company
expects to become a going concern for a long period time.
Table 4.3.2
Difference on the Challenges Encountered by the Brokerage Firms in
Terms of Number of Years in Operation
t-values Ho Interpretation
Import entry document 0.45 -0.77 Failed to Not Significant
operation Reject
Filing of bad order or 0.41 -0.83 Failed to Not Significant
and processing
Reject
Providing legal and 0.30 -1.06 Failed to Not Significant
[Type here]
As shown in the Table 4.3.2, all the p-values are higher than 0.05 level of
significance and the computed t-values of -0.77, 1.07, 0.048, 0.57, -0.83, and
-1.06 found not to be significant. This could also mean that the respondents do
not differ in their assessment on the challenges encountered by customs
brokerage firms whether they are operating for one 1 to 3 years, 4 to 6 years, 7
to 9 years or 10 years and above.
The length of operation defines the timeframe of ongoing recurring activities
involved in running a business for the purpose of producing value for the
stakeholders. It is understood as the sustained delivery of services to the
business customers at cost to make profit.
For a business to achieve long term operation, customer relationship is
utmost importance. To gain long term relationship with customers and achieve
return for the business, the business based on ethics. The trustworthiness of a
business, its customer care, its way of dealing with customers and its urge to
retain their old customers. Business ethics live a long lasting impression on the
customers and the impression on their minds builds trust, fetching a business
more customers while retaining the old ones.
According to Andal, et al. (2013), longevity gives a competitive advantage to a
customs brokerage and logistics firms. As the firms operate and still in a couple
of years, the history of the company will tell how long they provide good services
and that is the reason why they are still standing despite of many competitors.
The study of Calderon (2012) said that, some employers may use length of
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service as a factor in pay scales/bonuses. Clearly this may discriminate against
younger employees. But does this mean that rewarding longer service with
increased pay is illegal under the age discrimination regulation. Accordingly it
would appear the court is willing to accept length of service benefits are generally
not discriminatory as long as the employer is able to show the benefits fulfil a
business need. Employers should ensure that they are able to justify the use of
service related benefits and that they are not used arbitrarily, particularly when
they do not fall under the automatic under five (5) year exemption.
Number of Employees
Employees have an important role to be performed in any business. This
could affect the business in its operation for leading through stabilization. It can
be understand that the success of any effort of improving quality and productivity
must include their employees.
Table 4.3.3
Difference on the Challenges Encountered by the Brokerage Firms in
Terms of Number of Employees
Import entry document 0.44 0.86 Failed to Not Significant
operation Reject
short landed claim and Reject
processing
Reject
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As can be seen in the above table, the challenges encountered by brokerage
firms had computed f-values of 0.86, 0.17, 0.18, 0.42, 1.18, .and 24 respectively.
All of which correspond to a not significant level of probability based on the .05
level of significance. This could mean that there were no significant differences
on the respondent’s assessment on the challenges encountered by customs
brokerage firms when grouped according to number of employees, accepting the
null hypothesis.
An organization might have exceptionally high-quality products and
services, excellent customer service, best-in-class cost structure, or some other
advantage, but all of these are outcomes of the organization’s people - its human
capital. If organized and manage effectively, the knowledge and skills of the
people of the organization drive sustainable competitive advantage and long term
financial performance.
According to Hernandez et al., as cited by Covey (2005) employees are
given the chance to help the company by participating in a companywide
communications program making suggestions on waste reduction, environmental
improvement, customer satisfaction, quality improvement and safety issues.
Every employee should manage by a supervisor should provide highly practical
guidelines to recruit, utilize and evaluate the best employees for the business.
The supervisors are also liable to make their employees more competitive and to
undergo special trainings.
A customs broker is a professional imbued with public service so that
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financial rewards are subordinate considerations. A customs broker’s relationship
to his clients and fellow customs brokers is based mainly on the following
considerations - competence, respect, integrity, justice and fairness which must
observe in all professional dealings.
Capitalization
The strength of a business lies in its financial resources and how well they
are managed capital comprises the total assets of a business. It is the total sum
invested in the business.
Table 4.3.4
Brokerage Firms in Terms of Capitalization
Import entry 0.65 0.44 Failed to Not Significant
document operation Reject
and processing
Payment of charges 0.27 1.36 Failed to Not Significant
to government Reject
agencies
Delivery of goods 0.03 3.67 Reject Significant
As shown in the above, the p-value of 0.03 was lower than the 0.05 level
of significance and then the computed f-value of 3.67 is found to be significant.
This could mean that the respondents differ on their assessment on the delivery
of goods when grouped according to capitalization.
On the other hand, the respondent do not differ on their assessment on
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the challenges encountered by customs brokerage firms in terms of import entry
document operation, examination and appraisal for the release of goods,
payment of charges to government agencies, filing of bad order or short landed
claim and processing, and providing legal and technical advices when grouped
according to capitalization.
The capitalization is based in a business valuation method that establishes
the business value by forming part of the business economic benefit. It is also
known as “market cap” or the sum of a business long term debt, stock and
retained earnings. Capitalization is basically a measurement of company’s value
size.
To report the level of sales of a new business, it is important to start with a
sufficient working capital. But it is equally important to maintain an adequate
working capital with respect to sales throughout the growth of a new firm. When
sales are expanding, many start-up entrepreneurs ignore their working capital
requirements. They fail to provide for the larger working capital base required to
support their large volume of sales. Some entrepreneurs think that the increased
profit from the larger sales volume will take care of increased capital
requirements. Still, others do not give any thought to the capital needs that are
brought on by the expanded business activity. Increases in sales will usually
cause accounts receivable to rise, more inventories to be carried, and additional
employees may have to be hired or new equipment purchased. All of these
changes will put demands on the firm’s working capital and the wise
entrepreneur will have to do some planning to see that there is sufficient working
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capital to meet these needs (Entrepreneur for Modern Business, 2007).
The researchers found out that the capitalization between three million pesos
to fifteen million pesos is the highest. It affects the delivery of goods in some
circumstances like the higher the capitalization the higher goods delivery is
made. Having big capitalization is very important in the way that it will be easy to
meet the needs and wants of every firm and the expectations of the individuals in
and outside the firm. Also, researchers found out that the capitalization below
three million pesos is the lowest. Some small industry having low capitalization
suffered in terms of growth of units, employment, output and exports that affects
the delivery of goods.
Location
Location is the place where a firm decides to site its operations. When
choosing a location, company needs, customers, employees and equipment
needed to complete the service must be considered. A business’ location can
make an important difference to its success.
Table 4.3.5
Brokerage Firms in Terms of Location
Import entry 0.000 12.33 Reject Significant
document operation

and processing
Payment of charges 0.004 6.96 Reject Significant
to government
agencies
[Type here]
Reject
As shown in the table above, the p-value of 0.000 and 0.004 were lower than
the 0.05 level of significance and then the computed f-value of 12.33 and 6.96 is
found to be significant. This could mean that the respondents differ on their
assessment on the import entry document operation and payment of charges to
government agencies when grouped according to location.
On the other hand, the respondent do not differ on their assessment on
the challenges encountered by customs brokerage firms in terms examination
and appraisal for the release of goods, delivery of goods, filing of bad order or
short landed claim and processing, and providing legal and technical advices
when grouped according to capitalization.
Selecting the right option for accommodating your business is one of the most
important decisions when getting started. A great location can help improve sales
and productivity, attract the right kind of clients and good employees. The
location you choose will depend on the nature of your business, for example:
retail, manufacturing or professional services. It will also depend on your market
target and consumer demographics such as age, gender, income, lifestyle and
whether you need to see clients or customers at your premises.
Businesses must have ample space for the equipment required to produce
their products and services. If you have a manufacturing company, you will
require extensive space for equipment and inventory. Consider your business's
[Type here]
products and services when establishing your location. If your business draws
customers to a store location, the site must be convenient to the customer. The
location must be easily accessible and provide the customer with a feeling of
safety upon their arrival and exit. Ample parking is important for customers and
employees. If customers are unable to find suitable parking, they might choose to
visit a competitor who has the same qualified services with more convenient
parking. You also need adequate space for employees to park at or near your
location. Your business's service and sales opportunities are greatly affected by
your location. Your selected location should center on your target customers and
should generate walk-in traffic (http://www.smallbusiness.wa.gov.au/-premises-
location/).
In the present study, the research was conducted in Manila, Batangas and
Cavite. The researchers found out that locations affects the payment of charges
to government agencies. In Manila, BOC and other government agencies that
were needed to pay charges were just near unlike Cavite and Batangas which
are distant. In the case of import entry document operation, BOC and other
issuing agencies that issues appropriate import permits were in Manila.
Compared to Batangas and Cavite, Manila has more easy access.
4. Proposed Recommendations on the Challenges Encountered by
Selected Customs Brokerage Firms
Based on the data gathered, the researchers found out that there are rooms
for improvement on the characteristics of brokerage firms based on the
assessment of the respondents. In effect, the researchers proposed some
[Type here]
recommendations that were envisioned to be beneficial to the concerned
respondents and thus, trigger awareness for the brokerage firms to be more
responsive in their characteristics and responsibility towards their clients that will
pave the way in having a harmonious relationship and to be a nurtured business
entity.
Table 4.4.1
Proposed Recommendations on the Challenges Encountered by
Selected Customs Brokerage Firms
Areas of Concern Findings Recommendations
Import Entry It was shown in the study Have an effective
Document Operation that the composite mean of implementation of
the problems encountered operational procedures to
by the selected customs encompass a smooth flow
brokerage firms with of customs brokerage
regards to import entry operation.
document operation was
3.60.
Filing of Bad Order It was shown in the study File the claims within the
or Short Landed that the composite mean of contractual time limits and
Claim and the problems encountered shall be supported with
Processing by the selected customs complete documentation.
brokerage firms with
regards to filing of bad order
or short landed claim and
processing was 3.44.
Payment of Charges It was shown in the study Send a letter of request to
to Government that the composite mean of the client stating the
Agencies the problems encountered amount of money owed
by the selected customs and requesting payment by
brokerage firms with a specific deadline.
regards to payment of
charges to government
agencies was 3.36.
Delivery of Goods It was shown in the study Be aware of the closed
that the composite mean of highways, road
the problems encountered management and ensure
by the selected customs the safety equipment of the
brokerage firms with trucks to be used to avoid
regards to delivery of goods inconvenience in order to
was 3.25. deliver the goods on time.
Providing Legal and It was shown in the study Treat the clients with
[Type here]
Technical Advices that the composite mean of respect and guide the
the problems encountered clients in doing the customs
by the selected customs procedures for them to be
brokerage firms with familiar to the automated
regards to providing legal system.
and technical advices was
3.20.
[Type here]
Chapter V
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary, findings, conclusions and
recommendations derived from the data gathered, analyze and interpreted based
on the results obtained by the researchers.
Summary
The main objective of this study is to assess the challenges encountered by
the selected customs brokerage firms in Manila, Batangas and Cavite to further
enhance their qualities extended to their clients or customers. Specifically, this
study aims to answer certain questions. The first question is about the profile of
the respondents in terms of kind of business organization, number of years in
operation, number of employees, capitalization, and location. Second is about
how the respondents assess the challenges encountered by the selected
brokerage firms in terms of import entry document operation, examination and
appraisal for the release of goods, payment of charges to government agencies,
delivery of goods, filing of bad order or short landed claim and processing, and
providing legal and technical advices. The last question is about the
recommendations that may be proposed to prevent or solve the challenges
encountered by the selected brokerage firms.
Descriptive research design was used in this study. This study utilized a
questionnaire as the main instrument to assess the challenges encountered by
the brokerage firms. The respondents of this study were the selected thirty
companies from Manila, Batangas and Cavite. The statistical treatments used in
the study were percentage, weighted mean, one way analysis of variance and
[Type here]
independent t-test.
Findings
After the analysis and interpretation of data gathered, the researchers were
able to come up with the following significant findings:
1. Profile of the company
Out of 30 respondents, 22 or 74 percent of them is sole proprietorship as kind
of business organization. Brokerage firms in operation for more than 10 years
and above has the greatest percentage which is 63 percent meaning 19 out of 30
brokerage firms are operating for more than 10 years and the rest were below 10
years. Furthermore, 47 percent or 14 of the respondents has 11 to 15 numbers of
employees. Moreover, most of the brokerage firms has the capital of Php
3,000,000.00 to Php 15,000,000.00 having the percentage of 60 percent or 18
out of 30 respondents. With regards to the location of the brokerage firms, 10
firms were located in Manila, 10 firms also were in Batangas and the remaining
10 firms were in Cavite with a percentage of 33.3 percent in every location.
2. Challenges Encountered by the Selected brokerage firms
The researchers found that the respondents’ assessment on the challenges
encountered by the selected brokerage firms in terms of import entry document
operation is strongly agree with a composite mean of 3.60. On the other hand,
the researchers also found that the respondents’ assessment on the challenges
encountered by the selected brokerage firms in terms of filing of bad order and
short landed claim and processing is agree with a composite mean of 3.44.
Furthermore, researchers found that the respondents’ assessment on the
[Type here]
challenges encountered by the selected brokerage firms in terms of payment of
charges to government agencies is agree with a composite mean of 3.36.
Moreover, the researchers found out that the respondents’ assessment on the
challenges encountered by the selected brokerage firms in terms of delivery of
goods is agree with a composite mean of 3.25. Lastly, the researchers found that
the respondents’ assessment on the challenges encountered by the selected
brokerage firms in terms of providing of legal and technical advices is agree with
a composite mean of 3.20.
3. Difference on the assessment of respondent’s responses when grouped
according to profile variable
Based on the analysis, in relation to assessment of respondents’ responses
when grouped according to profile variable, delivery of goods was found to be
significant with a p-value of 0.03 thus rejecting the null hypothesis that there is no
challenges encountered by the selected brokerage firms in terms of capitalization
when grouped according to profile variables. Likewise, import entry document
operation with a p-value of 0.000 and payment of charges to government
agencies with a p-value of 0.004 was also found to be significant thus also
rejecting the null hypothesis that there is no significant difference on the
assessment of the respondents towards the challenges encountered by the
selected brokerage firms in terms of location when grouped according to profile
variables. Aside from that, all the variables in all aspects had a p-value of higher
than 0.05 level of significance. This affirms the null hypothesis that there is no
[Type here]
4. Recommendations proposed to lessen the challenges encountered by
the selected brokerage firms
The findings shows the assessment of the problems encountered by the
selected brokerage firms that is why the researchers proposed actions and
strategic plans for the enhancement and improvement of services rendered by
the brokerage firms.
Conclusions
Based on the findings generated on the study, the following conclusions were
hereby drawn:
1. Majority of the brokerage firms were sole proprietorship operating for more
than 10 years with 11 to 15 employees and a capitalization of three Php
3,000,000.00 to Php 15,000,000.00.
2. The result exhibited that all of the respondents agreed that there were
challenges in import entry document operation, filing of bad order or short
landed claim and processing, payment of charges to government agencies,
delivery of goods, and providing legal and technical advices.
3. Delivery of goods in terms of capitalization was found to be significant.
Likewise, import entry document operation and payment of charges to
government agencies in terms of location was also found to be significant.
The rest of the variables affirms the null hypotheses that there is no
[Type here]
4. The proposed recommendation was the enhancement of qualities rendered
by brokerage firms to their clients in order to maintain positive business
relationships and productivity.
Recommendations
Based on the findings and conclusions of the following recommendations are
provided to enhance the Problems Encountered by Selected Brokerage Firms.
1. Full coordination and proper communication among the importer/exporter and
employees of the brokerage firms involved in the transaction may be observe to
maintain effectiveness of the operation.
2. Brokerage firms may regularly notify the importer of the submission of
complete and accurate information so the clearance process will be smoother
and the shipment will be less likely to face any delays.
3. Employees of brokerage firms may strictly observe the primary objectives,
tenets, and principles of the Code of Ethics for Customs Brokers which are
competence, respect, integrity, justice, and fairness and conduct themselves with
the highest norm of professionalism when engaged in any professional dealings.
4. Brokerage firms may establish good relationship with their clients and ask
suggestions and feedbacks that could provide better and quality outcomes
[Type here]
BIBLIOGRAPHY
Books
Dias, L. & Shah, A., 2009. Introduction to Business. McGrow Hill Companies, Inc.
Avenue of the Americans, New York
Interim Internal Control Office (ICCO) and MISTG, 2010. Manual on Cargo
Clearance Prpcess (E2M Customs Import Assessment System) February
2010 Version 1.0. Llave Review and Training CenterInc, Manila, Philippines
Kling, R., Crawford, H., Rosenbaum, H., et al., 2010. Learning from Social
Informatics: Information and Communication Technologies in Human
Contexts. Indiana University, USA
Llorando, J.G., 2006. Dictionary of Tariff and Customs Terms. Llave Review
Training Center. Manila, Philippines
Articles/journals
Customs Administrative Order 10-2008. Payment Application Secure System

Version 5 - Intercommerce Network Services
Duties on Air Freight Forwarder. May 22, 2006
Manual on Freight Forwarding. Pp. 1-5
Republic Act No. 9280. An Act Regulating The Practice of Customs Brokers
Profession in the Philippines, Creating for the Purpose of a Professional
Regulatory Board for Customs Brokers, and Appropriating Funds Therefor
Resolution No. 02, Series of 2005. Code of Ethics for Customs Brokers
UNCTAD Trust Fund Negotiations, Technical Note 5, 2011
Unpublished Thesis
Almacen, Jenny rose M. and Gelera, Virginia Grace Z., 2009. Extent of Exercise
of Social Responsibilities of Brokerage Firms Transacting at the Port of
Batangas. Undergraduate Thesis, Batangas State University
Andal, Christian Rey C., Banawa, Johnry V. and Palo, Alvin Angelo A., 2013.
Assessment on the Delivery of Services of Customs Brokerage and Logistics
Companies. Undergraduate Thesis, Batangas State University
Balmes, Kathryn A. And Chavez, Alvin M., 2009. Performance Assessment of
[Type here]
Customs Brokerage Firms in Batangas. Undergraduate Thesis, Batangas
State University
Bargo, Alarchin and Carintoy, Jeffrey, 2009. Quality of Service of Customs

Brokerage in Port of Batangas. Undergraduate Thesis, Batangas State
University
Carandang, Shara and Gagalac, Rose Ann, 2011. Problems Encountered by the
Processors Transacting at the Bureau of Customs. Undergraduate Thesis,
Cayon, Manuel t., et al., 2009. BOC Urges Port Users to Get Accreditation to
Curb Smuggling.Undergraduate Thesis, Lyceum of Batangas, Batangas City
De Dios, Loreli C. et al., 2009. The Impact of Information Technology in Trade

Facilitation on Small and Medium Enterprises in the Philippines.
Undergraduate Thesis, Lyceum of Batangas, Batangas City
Enriquez, Mario and Makalintal, Emma, 2006. The Role of BOC in the Delivery of
Quality Services among Customs Brokerage Firms. Undergraduate Thesis,
Leones, Ermie M., et al., 2011. The Online Release System of PAL Atlantic Lines
(Philippines) Incorporated Warehousing Division: An Evaluation.
Undergraduate Thesis, Lyceum of Batangas, Batangas City
Liwag, Jizelle I., Madlangbayan, Analyn M., Mago, Bea Marynoelle B., et al.,
2010. Implementation of Electronic-to-Mobile System to Selected Customs
Brokerage in Manila and Batangas. Undergraduate Thesis, Lyceum of
Batangas, Batangas City
Lopez, Edgardo., et al., 2005. Efficiency and Problems of Customs

Representatives of Selected Brokerage Firms Operating at the Port of Manila
and the Manila International Container Port. Undergraduate Thesis,
Philippine Maritime Institute
Mangaba, A., Masangcay M., Mendoza, J., et al., 2010. Problems Encountered
in Warehousing Procedure by Union Agrivet Corporation. Undergraduate
Thesis, Lyceum of Batangas, Batangas City
Marasigan, Richmond, Rosales, Shiela and Vargas, Joy, 2008. Services

Rendered by Customs Brokerage Firms and Freight Forwarders to Importers
in COCOCHEM Agro-Industrial Park - Bauan Batangas. Undergraduate
Thesis, Batangas State University
Electronic Sources
http://www.comoxpacific.com/forms/CPECargoLoss.pdf
[Type here]
www.insurance.com/magazines/features/2009/09/221/158737.htm
www.myplan.com/career/customs-brokers/description-13-1199.03.html
http://www.smallbusiness.wa.gov.au/premises-location/
[Type here]
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Gov. Pablo Borbon Campus I, Rizal Avenue, Batangas City
College of Accountancy, Business Economics and
International Hospitality Management
SURVEY-QUESTIONNAIRE
“Challenges Encountered by Selected Customs Brokerage Firms”
General Direction:
Kindly accomplish the items of this questionnaire by placing your response as
indicated carefully and honestly. Rest assured that any information will be used
for research purposes only.
Name (optional): ________________________________

Company Name: ________________________________
Position: ________________________________
Part I. Demographic Profile of the Respondents
Directions: Please check the space provided which corresponds to your answer.
Kind of Business Organization

( ) Sole Proprietorship
( ) Partnership
( ) Corporation
Number of Years in Operation

( ) 1 - 3 years
( ) 4 - 6 years
( ) 7 - 9 years
( ) 10 years and above
Number of Employees
( ) 1-5
( ) 6 - 10
( ) 11 - 15
( ) more than 15
Capitalization
( ) Below Php 3,000 000.00
( ) Php 3,000 000.00 - Php 15,000 000.00
( ) Php 16,000 000.00 - Php 100,000 000.00
( ) Above Php 100,000 000.00
[Type here]
Location
( ) Manila
( ) Batangas
( ) Cavite
Part II. Problems Encountered by Customs Brokerage Firm
Direction: Listed below are the problems encountered by the customs brokerage
firms. Please check the space provided which corresponds to your answer by
using the following scale:
4 – Strongly Agree
3 – Agree
2 – Disagree
1 – Strongly Disagree
Import Entry Document Operation - processing 4 3 2 1

of documents in order to effect an importation
1. Import Entry Declaration is not valid because it is
beyond the prescribed filing period.
2. The importer failed to accomplish Single
Administrative Document/Import Entry and Internal
Revenue Document due to lack of manifest from
shipping line production and incomplete original
documents.
3. The importer failed to submit hard copies of
Assessment Notice and attachments to entry
processing offices for verification.
4. Client is not duly registered with the Client
Profile Registration System.
5. The appropriate import permits from concerned
issuing agencies for the importation is incomplete.
Filing of Bad Order or Short Landed Claim and 4 3 2 1

Processing - filing an official request when the
goods were damaged or defective
1. The assigned personnel are unsuitable as a
claim handler.
2. The insurance company responded to the claim
within a long period.
3. The importer who received error failed to resolve
the errors through Value Added Service Provider.
[Type here]
4. The claimant failed to report the loss to the
insurance company in a timely manner.
5. The supporting documents to file a claim are
incomplete.
Payment of Charges to Government Agencies - 4 3 2 1

payment of duties and taxes due to the government
1. There is a system error in the remittance of
payment of Authorized Agent Bank to BOC system
for the payment of duties and taxes.
2. The receipt of notice of the total assessment of
duties and taxes is late.
3. The process of transaction of payments is slow
due to poor connection.
4. The importer failed to secure valid and active
Customs Client Number from the BOC.
5. The designated non-cash instrument by the
importer is not enough to cover the payable duties
and taxes.
Delivery of Goods - process of taking or giving the 4 3 2 1

goods to the importer
1. Breaking down of trucks due to faulty battery, lost
keys, damaged tyres and wheels and fuel
problems.
2. The road management is poor resulting to heavy
traffic.
3. The highways are closed because of an
unexpected events and accidents.
4. The cargoes were not delivered on on time due
to bad weather.
5. The appropriate trucks and equipment’s for the
delivery of the special types of cargo are
insufficient.
Providing Legal and Technical Advices - offering 4 3 2 1

help to guide their clients in customs procedures
1. There is a computer malfunction.
2. Transacting with customs employees is difficult.
3. The job performance of employees is poor.
4. The automated system of customs is unfamiliar
to the clients and operator.
5. The guidelines in processing of documents were
not clear and updated.
[Type here]
SHERRY B. ERMITA
CAREER OBJECTIVE
A Bachelor of Science in Customs Administration

which is designed to prepare students to take
business leadership roles in tariff and customs
administration, logistics, freight forwarding and supply
chain management with knowledge in various
International quality requirements, standards,
procedures and documentation for different types of
applications.
To engage in “On the Job Training” that will allow me to

utilize my acquired knowledge in Customs
Administration and further enhance and develop my
skills and potentials.
Mobile
09057926208 To gain practical knowledge and to become an able
Address contributor towards the organization and provides scope
Lanatan, Balayan,
for individual development as well as organizational
Batangas
Email address growth in customs administration field, and to develop
sherryermita@yahoo.com my career as a customs administration.
ASSETS AND CAPABILITIES
EDUCATIONAL PROFILE:  Computer literate (knowledgeable in MS

Word, Excel, PowerPoint)
TERTIARY (COLLEGE)
2013-Present  With good moral character.
Bachelor of Customs
Administration
 Has good communication skills in both
English and Filipino
SECONDARY
(HIGHSCHOOL)
2009-2013
Balayan National High
School
Paz St., Balayan, Batangas
PRIMARY (ELEMENTARY)
2004-2009
Lanatang, Munting-tubig
[Type here]
Elementary School
Lanatan,Balayan, Batangas CHARACTER REFERENCES
PERSONAL DETAILS:
Gender: Female
Date of Birth: September
05,1996 Mrs. Prima C. Delizo
Civil Status: Single OIC, Department Chair of Customs Administration
Citizenship : Filipino CABEIHM Department, Batangas State University
Religion: Roman Catholic
Language Spoken: English, Ms. Nancy Macaraig
Filipino (Tagalog) College Instructor
CABEIHM Department, Batangas State University
ORGANIZATIONAL
AFFILIATIONS:
2013-2015
Philippine Society Of
Customs Administration
Students
Chapter
Batangas City
SEMINARS ATTENDED:
Pre – OJT Orientation

Seminar:
Batangas State University –
Gov. Sanoy Leviste
Rizal Avenue, Batangas
City
February 24, 2014
1st Luzonwide Research

Conference on Customs
Administration:
“Pursuing Leadership in
Research and
Development” I hereby certify that the above information are true and
Batangas State University – correct to the best of my knowledge and belief.
Amphitheater, CITE Bldg.
City SHERRY B. ERMITA
September 27, 2013
[Type here]
MARY JOY M. FAJUTAG
CAREER OBJECTIVE

applications.

Mobile Administration and further enhance and develop my
09469331866 skills and potentials.
Address
Bigaan, San Teodoro, To gain practical knowledge and to become an able
Oriental Mindoro contributor towards the organization and provides scope
Email address
darjoy12yahoo.com
growth in customs administration field, and to develop
my career as a customs administration.

EDUCATIONAL PROFILE:
 Computer literate (knowledgeable in MS Word,
TERTIARY (COLLEGE) Excel, PowerPoint)
2013-Present
Bachelor of Customs  With good moral character.
Administration
Batangas State University  Has good communication skills in both English
and Filipino
SECONDARY
(HIGHSCHOOL)
2009-2013
Northern Mindoro Academy
Poblacion, San Teodoro,
Oriental Mindoro
2004-2009
Bigaan Elementary School
Bigaan, San Teodoro,
Oriental Mindoro
[Type here]
PERSONAL DETAILS: CHARACTER REFERENCES
Gender: Female
Date of Birth: September
24,1996
Civil Status: Single Mrs. Prima C. Delizo
Citizenship: Filipino OIC, Department Chair of Customs Administration
Religion: Roman Catholic CABEIHM Department, Batangas State University
Language Spoken: English,
Filipino (Tagalog) Ms. Nancy Macaraig
College Instructor
ORGANIZATIONAL
AFFILIATIONS:
2013-2015
Students
Chapter
Batangas City
SEMINARS ATTENDED:

Seminar:
Gov. Sanoy Leviste
City
February 24, 2014

Administration:
Research and
Development” I hereby certify that the above information are true and
Batangas State University – correct to the best of my knowledge and belief.
City MARY JOY M. FAJUTAG
September 27, 2013
[Type here]
MERRYL A. GARCIA
CAREER OBJECTIVE

applications.

Mobile Administration and further enhance and develop my
09262648891 skills and potentials.
Address
Banalo, Lobo, Batangas To gain practical knowledge and to become an able
Email address contributor towards the organization and provides scope
garcia.merryl@yahoo.com
growth in customs administration field, and to develop
my career as a customs administration.
EDUCATIONAL PROFILE:
TERTIARY (COLLEGE)
2013-Present  Computer literate (knowledgeable in MS Word,
Bachelor of Customs Excel, PowerPoint)
Administration
Batangas State University  With good moral character.
SECONDARY  Has good communication skills in both English
(HIGHSCHOOL) and Filipino
2009-2013
Masaguitsit-Banalo National
High School
Masaguitsit, Lobo,
Batangas
2004-2009
Banalo Elementary School
Banalo, Lobo, Batangas
[Type here]
CHARACTER REFERENCES
PERSONAL DETAILS:
Gender: Female
Date of Birth: January 26,
1997 Mrs. Prima C. Delizo
Civil Status: Single OIC, Department Chair of Customs Administration
Citizenship: Filipino CABEIHM Department, Batangas State University
Religion: Roman Catholic
Language Spoken: English, Ms. Nancy Macaraig
Filipino (Tagalog) College Instructor
ORGANIZATIONAL
AFFILIATIONS:
2013-2015
Students
Chapter
Batangas City
SEMINARS ATTENDED:

Seminar:
Gov. Sanoy Leviste
City
February 24, 2014

Administration:
Research and I hereby certify that the above information are true and
Development” correct to the best of my knowledge and belief.
MERRYL A. GARCIA
City
September 27, 2013
[Type here]
MONICA C. MANALO
CAREER OBJECTIVE

applications.

Administration and further enhance and develop my
skills and potentials.
Mobile To gain practical knowledge and to become an able

09488026248 contributor towards the organization and provides scope
Address
As-is, Bauan, Batangas
Email address growth in customs administration field, and to develop
akicatoner98@yahoo.com my career as a customs administration.
EDUCATIONAL PROFILE:  Computer literate (knowledgeable in MS Word,

Excel, PowerPoint)
TERTIARY (COLLEGE)
2013-Present  With good moral character.
Bachelor of Customs
Administration  Has good communication skills in both English
Batangas State University and Filipino
SECONDARY
(HIGHSCHOOL)
2009-2013
Bauan Technical High
School
Bauan, Batangas
2004-2009
As-is Elementary School
[Type here]
Bauan, Batangas
PERSONAL DETAILS: CHARACTER REFERENCES
Gender: Female
Date of Birth: May 22,1997
Civil StatuS: Single
Citizenship: Filipino Mrs. Prima C. Delizo
Religion: Roman Catholic OIC, Department Chair of Customs Administration
Language Spoken: English, CABEIHM Department, Batangas State University
Filipino (Tagalog)
Ms. Nancy Macaraig
College Instructor
ORGANIZATIONAL CABEIHM Department, Batangas State University
AFFILIATIONS:
2013-2015
Students
Chapter
Batangas City
SEMINARS ATTENDED:

Seminar:
Gov. Sanoy Leviste
City
February 24, 2014

Administration:
Research and
Development”
Batangas State University – I hereby certify that the above information are true and
Amphitheater, CITE Bldg. correct to the best of my knowledge and belief.
City
September 27, 2013 MONICA C. MANALO
[Type here]
[Type here]

Challenges Encountered by Selected Customs Brokerage Firms

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CHALLENGES ENCOUNTERED BY SELECTED

CUSTOMS BROKERAGE FIRMS

This research entitled "Challenges Encountered by Selected Customs

Approved by the Committee on Oral Examination with the grade of

Accepted and approved in partial fulfillment of the requirements for the

and success of their endeavour:

To Batangas State University for providing good education among students

and for doing everything for the welfare of their students.

To Dr. Elisa S. Diaz, the Dean of College of Accountancy, Business,

Economics and International Hospitality Management for her support in the

realization of this study and for being their chairperson.

To Mrs. Prima C. Delizo, for her advices and encouragement, supervision

and assistance regarding the subject.

To the panelists, Asst. Prof. Amelia D. Comia and Mr. Richmond A.

the researchers to make this study possible.

analyze the data.

To the grammarian, Mrs. Lorena F. Mendoza for taking the time to do

necessary corrections and further improvement of this study.

To the librarians for granting the researchers permission to seek

references essential in the preparation of the study.

To the respondents for their cooperation and support by sincerely answering

the questionnaires given.

To the researcher’s classmates and friends for extending their moral

for giving them financial support.

knowledge, wisdom and understanding.

CHAPTER I. THE PROBLEM

CHAPTER II. REVIEW OF RELATED LITERATURE

CHAPTER III. RESEARCH METHODOLOGY

CHAPTER IV. PRESENTATION, ANALYSIS AND

CHAPTER V. SUMMARY, FINDINGS, CONCLUSIONS

4.1.2 Distribution of Brokerage Firms in Terms of

4.1.3 Distribution of Brokerage Firms in Terms of

4.1.4 Distribution of Brokerage Firms in Terms of

4.1.5 Distribution of Brokerage Firms in Terms of

4.2.1 Assessment on the Problems Encountered by the

4.2.2 Assessment on the Problems Encountered by the

4.2.3 Assessment on the Problems Encountered by the

4.2.4 Assessment on the Problems Encountered by the

4.2.5 Assessment on the Problems Encountered by the

4.3.1 Difference on the Challenges Encountered by the

4.3.2 Difference on the Challenges Encountered by the

4.3.3 Difference on the Challenges Encountered by the

4.3.4 Difference on the Challenges Encountered by the

4.3.5 Difference on the Challenges Encountered by the

4.4.1 Proposed Recommendations on the Challenges

The researchers chose to study the challenges encountered by the selected

customs brokerage firms. Customs brokerage firm is an entity engaged in

providing services to an importer or exporter which has a licensed customs

broker, especially mentioned in the provision of the Republic Act 9280..

The main objective of this study is to assess the challenges encountered by

enhance their qualities extended to their clients or customers. Specifically, this

the respondents in terms of kind of business organization, number of years in

operation, number of employees, capitalization, and location. Second is about

how the respondents assess the challenges encountered by the selected

or short landed claim and processing, payment of charges to government

question is about the recommendations that may be proposed to prevent or solve

the challenges encountered by the selected brokerage firms.

questionnaire as the main instrument to assess the challenges encountered by

percentage, weighted mean, one way analysis of variance and independent t-

capitalization of three Php 3,000,000.00 to Php 15,000,000.00.

claim and processing, payment of charges to government agencies, delivery of

goods, and providing legal and technical advices.

Findings showed that delivery of goods in terms of capitalization was found to